BusinessMirror January 21, 2015 by BusinessMirror

ALLNEW MITSUBISHI MONTERO SPORT UNLEASHED Mitsubishi Motors Philippines Corp. (MMPC) officially unveiled the all-new Montero Sport on Wednesday at the World Trade Center in Pasay City. After seven years, this bestselling midsize sport-utility vehicle (SUV) finally gets a full redesign and now boasts of even better performance, comfort and safety features. The vehicle first debuted in Thailand in August 2015. The Philippines is the fourth country to release the SUV and it will be available in four variants, namely, the GT 4 Wheel Drive eight-speed automatic transmission, GLS 4WD six-speed manual transmission, GLS 2 Wheel Drive Premium eight- speed AT and the base model GLS 2WD eight-speed AT. The Montero Sport, which is produced at Mitsubishi Motors Thailand, will be introduced in more than 90 countries from around the globe, including Asia, Asean, Oceania, East Europe, Middle East, Africa and Latin America regions, among others. TEXT BY TET ANDOLONG, PHOTO BY ROY DOMINGO

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Philip Morris case revives Manila-Bangkok WTO row

HE Philippines and Thailand are likely to return to the World Trade Organization (WTO) mediation table, as a ranking trade official said Manila will raise before the body’s General Council meeting in February the taxevasion case filed by Bangkok against Philip Morris Thailand, which imports tobacco products from the Philippines.

INSIDE

BEAUTIFUL BEACHES BECKON IN BASILAN

Life

Diffuse peace throughout the world

EAR God, Your perfect love casts out all fear. In confidence we pray: God of love, hear us. Shed light and understanding on the fears that prevent people from fruitful dialogue and listening. Protect all children from harm and lead them to know their precious worth. Heed the cries of parents who struggle to provide for their children. May the light of the new born Christ dispel all darkness and diffuse peace throughout the world. May Jesus’s presence in each one be felt and lived forever more. Amen. GIVE US THIS DAY, COMMITTEE ON WORSHIP AND LOUIE M. LACSON, HFL Word&Life Publications • teacherlouie1965@yahoo.com

Editor: erard . a o • i e t e

ine

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Thursday, January 21, 2016

Beautiful beaches beckon in Basilan SCENES of idyll at Malamawi Island in Basilan

Manila, according to the official, needs to initiate discussions with Bangkok before the WTO due to the case’s possible implications on the country’s cigarette-making industry. The Philippines is the top cigarette supplier of Thailand, with the

STORY & PHOTOS BY AYUNAN G. GUNTING

HE waters that surround Basilan, the island-province at the top of the Sulu archipelago, are as blue as lapis lazuli or even more. Clear and delicate, the waters are tranquil as the place, a stark contrast to reports about Mindanao’s peace and order. Dubbed the “Gateway to Basilan,” White Beach Resort in Malamawi Island is being a touted as a new tourism destination for its pristine white beach and beautiful waters. One could spend the whole day watching the changing patterns on the surface of Sulu Sea. The shades range from celadon to sapphire. When the sun is at its peak, the waters sparkle like a mirror. At night, the sea resembles a glowing volcanic glass. Lush coconut trees serve as natural fence that offers privacy. The residents are fishermen, mostly Badjaos or sea gypsies who live on stilt houses. They catch their fish before dawn and bring their catch to Isabela. A stay in Malamawi is like being in Boracay in the early 1980s. Tourists can stay in either open-air cottages and enjoy grilled seafoods. Airconditioned cottages are being built on Malamawi Hill, which offers a panoramic view of the island. One can easily escape the city life and hie off to Malamawi for a day tour. As one alights from the boat ride from either the cities of Isabela or Zamboanga, a motorcycle or a truck takes the traveler to Malamawi Beach. For peace of mind, visitors can hire security forces to escort them around the island. Malamawi is across Basilan’s capital, Isabela City, and a 30-minute boat ride to Zamboanga City. Because of its accessibility, it is seen as potential tourism hub. Autonomous Region in Muslim Mindanao Gov. Mujiv Hataman is urging local businessmen to set up more tourist accommodations, retail establishments and sporting activities to attract leisure travelers. He is confident because Basilan has one of the lowest reports of poverty in the Philippines. The gap between the affluent and the poor is narrow. There are other must-see places in Basilan that show its multiethnicity. The Kaum Purnah Mosque in Isabela City is a museum of the cultures of the different indigenous and Muslim groups. For Christians, the Cathedral of Saint Elizabeth of Portugal and the Chapel of Peace on Calvario Peak are sanctuaries for the soul. Near the city center, the Cabunbata Falls is a quick escape, surrounded by a jungle of rubber trees. Pusuac Spring Park offers exotic flora and fauna. The other famous beaches include Tenusa Island, Calugusan and Palm Beaches in Lamitan, and Sumagdang Beach in Isabela City. “The hidden gems of Basilan are becoming hot spots for tourists. There are many reasons to visit these places. There’s nothing to fear in Basilan,” Hataman says. n

Spectacular holiday stays for two in HK, SG MAKATI Shangri-La, Manila offers guests a chance to win “The Spectacular Holiday Stays,” a grandiose getaway for two lucky persons at Kowloon Shangri-La, Hong Kong and Shangri-La Hotel, Singapore. From December 15, 2015 to January 31, 2016, guests staying at Makati Shangri-La, Manila will be entitled to one raffle entry to the raffle promo. The lucky winner and his companion

of choice will win a two-night stay each at Kowloon Shangri-La, Hong Kong and Shangri-La Hotel, Singapore and a roundtrip airfare via Cathay Pacific Airways. The raffle is open to all guests booking any rate or package. The winner will be immediately notified via telephone and e-mail after the raffle draw on February 5. For more information, see goo.gl/ k74XBl.

country’s main cigarette manufacturer being Philip Morris. Data show that the country holds an estimated 40-percent share in the Thai domestic cigarette market. T he main concer n of the Philippines, the source said, is Philip

Number of Filipino farmers likely to be affected by the resuscitated tobacco dispute Morris’s 2 million tobacco farmers and how this will affect their livelihood. As of the moment, the Philippine government has yet to decide whether it will step into the issue fully, or just be content with the already-settled case at the WTO, and let Philip Morris take the

MORE than just a vast melting pot of cultures teeming with rich history and traditions, Asia is home to plenty of destinations that offer delightfully unexpected pleasures—from the fresh and eccentric, to the artistic and eclectic. The Philippines’s leading airline, Cebu Pacific (www.cebupaci�icair.com) invites traveling Juans to take the quirky route in exploring some of Asia’s most-exciting cities. MANILA’S CHAOTIC BEAUTY MANILA may often be overlooked by tourists who can’t wait to head straight to the Philippines’s more famous pristine beaches. But the bustling capital is more than just its huge malls, business districts and notorious traffic. In the old walled city of Intramuros, the country’s colorful past—from the precolonial period to the Spanish and the World War era—can be traced through a historic but fun walking tour made more pleasurable by calesa and pedicab rides. Several walking tours take guests around the city’s original kilometer 0, where packs of tourists and locals alike are led along old churches and historic buildings.

A jeepney ride away from Intramuros is Binondo, the world’s oldest Chinatown where many of the city’s best tea houses and dimsum diners can be found in between temples and charm shops. However, if one truly knows where to look, Binondo’s best feature doesn’t come with sipping from tea cups and picking on wrapped kuchay, but from a more infamous bizarre offering: exotic food, from Estero’s buttered frog legs, Golden Fortune’s ostrich and crocodile meat dishes, to Café Mezzanine’s best-selling Soup No.5 (bull’s testicles). SINGAPORE’S PLETHORA OF ARTISTIC HAPPENINGS SINGAPORE may be known for its ever-rising skyscrapers and modern architectural wonders, but it is no longer just about the high-end and expensive. For those who want to skip the usual commercial attractions, Haw Par Villa is an unusual theme park where one can learn of the country’s history and culture. Built in the 1930s by two Burmese brothers, the park displays a thousand statues depicting Chinese mythology, folklore, legends and history. Its most

famous attraction is the Ten Courts of Hell, which shows gruesome and eerie scenes of hell according to Chinese mythology. Travelers will feel that they are no longer in Singapore when they arrive at the Bollywood Veggies in the beautiful Kranji Countryside, a 10-acre countryside organic farm that serves

organic home-cooked meals. Young Singaporeans who have a taste for the hip and cool are adding more character to the city-state as an upbeat hub for shopping and the arts. A few blocks from the shopping area of Bugis are the narrow streets of Haji Lane and Arab Street. Littered with colorful street

LIFE

B M. S F. A

Special to the BM

THE country’s tourism sector can easily surpass the contributions of the semiconductor and business-process outsourcing (BPO) industries with the increase in the number of seats available for flights, as well as an improvement in infrastructure capacity and accommodations. This was the confident prediction of Arturo P. Boncato Jr., assistant secretary of the Department of Tourism, at the media briefing for the Asean Tourism Forum on Wednesday. This developed as visitor arrivals to the Philippines reached 5.36 million in 2015, up 11 percent from the 4.83 million in 2014. This was much lower, however, than the 8.2-million visitor-arrivals target for the year. But tourism receipts, he said, hit $5 billion ($237.5 billion) in 2015, up 3.3 percent from 2014. “The tourism industry’s significant measure of tourism performance is not the visitor arrivals but the revenues it generates, which stimulate economic activity in the country…. With more economic activities arising from tourism, people directly employed in the tourism industry rose to 4.99 million in 2015. Tourism accounts for one in every 10 jobs in the economy, or 12.7 percent share to C  A

Now in the Philippines

art, the area is lined with bars, cafés and tiny picturesque shops that sell everything, from unique fashion finds to stationeries and art pieces. TAIWAN’S ECLECTIC ATTRACTIONS IN Taipei, young people stay up late not to party in clubs but to hang out till the wee hours inside a 24-hour bookstore. Eslite, Taiwan’s biggest bookstore chain, has redefined the night life and made reading one of the hippest pastimes in the country. Here, the busiest hours are from 10 pm to 2 am, when customers of all ages fill the bookstore, seated in corners or leaning by the bookshelves, all absorbed in their books. Foodies and concept restaurant hunters will love Taipei’s abundance of themed cafés and restos, such as A380 In-Flight Kitchen, Modern Toilet, Hello Kitty Sweets Café, and the Barbie Café. For the outdoorsy type, Yehliu Geopark, just 40 minutes from the capital, is an aweinspiring natural marvel of rocks formed into shapes resembling figures such as the Queen’s Head, the Fairy’s Shoe, the Mushroom Rocks, the Tofu Rocks and the Elephant Rocks.

TOURISM CAN BECOME PHL’S TOP DOLLAR EARNERD.O.T.

C  A

Discover Asia’s quirky attractions TAKE your gastronomical experience up a notch in Taiwan’s notable night market that’s sure to fulfill your hunger for anything delicious.

P.  |     | 7 DAYS A WEEK

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GARDENIA EXPANDS PLANT Gardenia Bakeries Philippines Inc. President and General Manager Simplicio A. Umali Jr. (left) and QAF Group Managing Director Tan Kong King inspect the newly inaugurated 6K2 plant of the country’s top baker, which can produce 6,000 loaves per hour, at the Laguna International Industrial Plant. ALYSA SALEN

IMF cuts world growth forecast on ‘great challenges’ OBSTFELD: “This coming year is going to be a year of great challenges.”

ARNING of “great challenges” this year for the world economy, the International Monetary Fund (IMF) on Tuesday downgraded its forecast for global growth. The worldwide economy will expand 3.4 percent this year and 3.6 percent next year, the organization said. Both figures would be improvements over 2015’s 3.1-percent growth. But the forecasts in the IMF’s quarterly world economic outlook were down from October projections of a 3.6-percent growth this year and 3.8 percent next year. “This coming year is going to be a year of great challenges, and policy-makers

PESO EXCHANGE RATES n US 47.6730

should be thinking about short-term resilience and the ways they can bolster it, but also about the longerterm growth prospects,” said Maurice Obstfeld, IMF economic counselor. The US economy is projected to grow 2.6 percent this year and 2.6 percent again next year, down from October projections of 2.8 percent each year. US growth last year was 2.5 percent, the IMF estimated. Slowdowns in many advanced and emerging economies led to the downgraded global forecast. Underscoring the IMF’s concerns, China reported Tuesday that its

Out soon Free to BusinessMirror subscribers

C  A

n JAPAN 0.4056 n UK 67.5431 n HK 6.0979 n CHINA 7.2466 n SINGAPORE 33.1662 n AUSTRALIA 33.0283 n EU 52.0494 n SAUDI ARABIA 12.7135

Source: BSP (20 January 2016 )

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Tourism can become PHL’S top dollar earner–DOT C  A

total employment, according to the Philippine Statistics Authority,” Boncato said in his media briefing. He added that the tourism sector now is the “third-largest dollar earner” for the Philippines, after the BPO and semiconductor industries. The BPO sector has set a $25-billion revenue goal for 2016. “We have all the opportunities; once we increase connectivity, improve access, increase the number of airports, the BPO sector, [yes we can surpass it], semiconductor, yes we can [surpass it]. We just have to increase seats, increase capacity, and that’s the only way we can do it. The way we look at it, the department’s point of view, Philippine tourism can still accommodate growth in the next 12 years,” he stressed. South Korea remained the top source market for tourists, with a 25-percent share to total inbound traffic. “This market has marked another history as the first market to surpass the 1.3 million arrivals,” Boncato added. Without specifying the exact numbers, he said other top source markets after South Korea were the United States, Japan, China, Australia, Singapore, Taiwan, Malaysia, Canada, the UK, Hong Kong and Germany. “China, Korea and Taiwan reamed robust with double-digit gains,” he said. While the China visitor arrivals have picked up significantly, he admitted that the “Chinese tour groups are still not coming.” The clampdown by the Beijing

FOREIGN and local delegates line up to register at the registration booth for the ongoing Asean Tourism Forum (ATF) hosted by the Philippines. ATF is a cooperative regional effort to promote the Asean region as one tourism destination. The annual event involves all the tourism industry sectors of 10 member-nations of Asean: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The event will be until January 22. ALYSA SALEN

government on corruption and lavish lifestyles, plus diplomatic tensions with the Philippines over the West Philippine Sea, have slowed down the arrivals of Chinese tour groups.

Intra-Asean arrivals to the Philippines also helped boost overall visitor arrivals in the country, he said, “registering an annual compounded average growth rate of 9.56 percent from 2008 to 2015.” Among the

strong Asean markets are Singapore (181,176 arrivals) and Malaysia (155,814 arrivals). The growing number of tourists to the country has sparked an increase in accommodations, as well.

As of 2014, there were 8,841 “accommodation enterprises,” bringing total room capacity to 202,797 rooms. “As confidence in the industry continues,” Boncato said, “new investments in tourist destinations

continue to pour in. Some of these investments include the Hennann Resort and BE Resort in Bohol, with an accumulated investment of $37.36 million in 2015.” About 15 new hotels started operating in 2015, providing an additional 1,903 rooms for the tourism industry. These new hotels, costing a total investment of $410 million (P18.7 billion) were endorsed by the DOT to the Board of Investments. “The industry remains robust with new tourism products in the offing like the 12 Eco-Tourism Packages being developed, to infrastructure projects like the Tagbilaran Tourism Bubble in 2016 and Panglao Airport in 2017,” Boncato said. To address connectivity and access requirements for the industry, some of the projects include the $83-million uprgrade of the Puerto Princesa International Airport “to support the growing arrivals in the is destination. Likewise, the completion of the San Vicente Airport will continue to boost arrivals in the province of Palawan.” The Asean Tourism Forum (ATF) is currently ongoing in Manila until January 22, with venues at the SMX Convention Center, Philippine International Convention Center and the Sofitel Philippine Plaza. The ATF also features the Travel Exhibition where foreign buyers and Asean sellers will network to produce tourism packages to boost visitor arrivals in the Asean. Last year international visitor arrivals to the region reached 102 million.

Philip Morris case revives Manila-Bangkok IMF cuts world WTO row… growth forecast on C  

initiative to counter the allegations. “But a policy decision on the issue will have to be made,” the source added. According to foreign media reports, the Thai government has alleged that Philip Morris, through its local subsidiary, has evaded some $551.27 million worth of taxes by underdeclaring import prices for 272 batches of cigarettes from the Philippines between 2003 and 2006.

‘Violation of WTO deal’

PH I L I P Mor r i s T h a i l a nd ( PM T ), i n a statement, asserted that the charges are “meritless, unjust and in violation of Thailand’s obligations to comply with the WTO Customs Valuation Agreement.” “At the WTO, the Philippines challenged Thailand’s claims of undervaluation for cigarette imports and the WTO has ruled with finality in favor of the Philippines,” said lawyer Anthony Abad, one

of the lawyers of Philip Morris in the Philippines who helped win the WTO case for the country. Abad said Thailand’s disregard of the WTO’s recommendation on valuation is inconsistent with the ruling. Likewise, prosecution of this case would be in violation of the WTO decision. “It will be interesting to see what steps the Philippine government now takes if this WTO decision is now being undermined by these prosecution attempts,” Abad added.

Decided WTO case

THIS charge ties in with an earlier broader trade dispute between the Philippines and Thailand on tobacco products that was already resolved before the multilateral trading body. The Philippines, in 2008, questioned Thailand’s fiscal and customs measures affecting its cigarette exports before the WTO disputesettlement body. The Philippines claimed that its cigarettes are being excessively taxed versus their domestically manufactured counterpart in Thailand, and are being slapped with burdensome, administrative requirements. Thailand subjected resellers of imported cigarettes to value-added-tax-related administrative requirements while exempting resellers of domestic cigarettes from these. T he Phi lippines a lso claimed Thailand’s customs valuation is inconsistent with the WTO’s Customs Valuation Agreement. The WTO ruled in favor of the Philippines. The multilateral trading body affirmed that Philip Morris’s declared import value was correct, and ordered Thailand to comply with the recommendations and rulings of the disputesettlement body. Bangkok has adopted a Royal Decree in 2013 abolishing the discriminatory exemptions extended to resale of domestic cigarettes, although the Philippines has noted the slow compliance of Thailand with the WTO ruling. The Thai government has

reportedly been making strides to reimburse taxes to Philip Morris after the WTO ruled that it has levied taxes unfairly to the company.

Charges to be examined

HOWEVER, with this recent criminal case filed by the Thai government versus Philip Morris Thailand covering the importation of cigarettes from 2003 to 2007, Philippine government officials said they must examine the charges brought by the Thai government against the tobacco firm to see if these overlap with the charges on particular import entries already upheld by the WTO. “The charge sheet has not been examined yet. We need to study if the import entries in the charge sheet are covered by the dispute-settlement case,” said another source, who sought anonymity. If the coverage and nature are the same, this may be an opening to strengthen Philip Morris’s case, as the company can argue that the WTO has already decided on matter. However, given the close relations of the Philippines and Thailand, in addition to being Asean neighbors, there has to be a balance between the WTO case and the domestic criminal case of the Thai authorities against the tobacco giant, the government officials pointed out.

‘We’ve done nothing wrong’

IN a statement, Philip Morris Thailand Branch Manager Troy Modlin said the company has done nothing wrong and prosecuting the case will undermine Thailand’s desire to revitalize its reputation in the international community as a marketbased open economy that is investor friendly.” “Not only are these charges wholly without merit and in violation of Thailand’s obligations to comply with the WTO Customs Valuation Agreement, they also call into question Thailand’s commitment to fairness, transparency and the rule of law,” Modlin said. He said the decision of the former Attorney General Julasingh Vasantasing to charge Philip Morris Thailand and its current and former employees contradicts the nonprosecution order his own office made more than four years ago, as well as prior rulings of the Thai Customs Department, the Customs Board of Appeal, the Customs PostClearance Audit Bureau and the WTO. He added Philip Morris-Thailand has cooperated fully with all involved government agencies since the WTO launched its investigation in 2006. The company intends to vigorously defend itself against these meritless charges and demonstrate that it is in full compliance with Thai law and international standards of customs valuation. Catherine N. Pillas, PNA

‘great challenges’ C  A

economy expanded 6.9 percent last year. That was down from 7.3 percent in 2014 and the slowest pace since 1990. The figure from China’s National Bureau of Statistics was in line with estimates and the government’s target of about 7-percent growth. Although there is skepticism about the reliability of China’s official economic data, the report boosted financial markets because there was a fear the government’s number would be lower, given signs in recent months of a steeper slowdown. Financial markets in Asia and Europe rose on Tuesday on what was viewed as upbeat news about China after escalating worries of a much sharper slowdown triggered sell-offs that have plagued the new year. On Tuesday major US stock indexes started the first trading session of the holiday-shortened week higher—a reversal of Friday’s losses. But another drop in crude oil prices erased much of the gains. Stocks ended the day with mixed results. The Dow Jones industrial average was up 27.94 points, or 0.2 percent, to close at 16,016.02. The broader Standard & Poor’s 500 index nudged up 1 point, or 0.1 percent, to 1,881.33. But the technology-heavy Nasdaq composite index fell 11.47 points, or about 0.3 percent, to 4,476.95. Crude oil prices have been falling in the face of weakening demand and global oversupply. The lifting of nuclear weaponsrelated sanctions against Iran last weekend will allow that nation to ship more oil into the bloated world market. In its first report of the year, the International Energy Agency said on Tuesday

that “the oil market could drown in oversupply” and warned prices could go lower. Economists worry that the US economy might not be strong enough to withstand a lengthy bout of falling stock prices and financial market turmoil. “If the market continues to slide, then there will be a negative impact, particularly on consumer spending,” said Mark Zandi, chief economist at Moody’s Analytics. China is the source of much of the volatility because of concerns about its future economic growth. “The long-term reasons for China’s weaker growth have not substantially changed—a slow grind of old industries and excess investment,” said Brian Jackson, a China economist at IHS Global Insight. IHS predicts China’s economy will expand 6.3 percent this year, as the nation continues to transition from a focus on manufacturing and exports to more domestic consumption, he said. The IMF also projects 6.3percent economic growth in China this year, dropping to 6 percent next year. Those figures are the same as in the October forecast. But the IMF warned that a sharper-than-expected slowdown in China was one of the main risks to the world economy. Such a slowdown “could bring more international spillovers through trade, commodity prices and waning confidence,” it said. A key reason for the IMF’s downgrade in projections for developing economies is a deep recession in Brazil, triggered in part by less demand for its commodities in China. The IMF said Brazil’s economy would contract 3.5 percent this year —much worse than forecast last October— after shrinking 3.8 percent last year. MCT

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Thursday, January 21, 2016

Better spectrum allotment needed for radio frequencies MILLIONS OF TONS OF FISH CATCH WORLDWIDE ARE UNREPORTED T B L S. M

HERE is an urgent need for the government to address the “spectrum mess” in the Philippines, as such a quandary, makes the state miss out on billions of pesos in potential revenues and leaves consumers shortchanged, a telecommunications expert said.

P65M Value of 10 MHz of 3G in the 2100 band

Mary Grace Mirandilla-Santos, an independent researcher on information and communications technology and telecommunications policies, said there is an apparent lack of a spectrum-management plan in the Philippines, resulting in the shortfall in public auctions even though such tenders are mandated by law. She scored the National Telecommunications Commission (NTC) for simply assigning frequencies to local telcos without auctioning them off. This, she added, hurts the quality of telecommunications services in the Philippines. “The growing demand for mobile broadband worldwide has made radio-spectrum allocation a matter of critical importance,” she said. “By law, spectrum allocation in the Philippines is to be done through an open tender and auction, following the standard government bidding process.” The procedure for the review, allocation and assignment of the spectrum is contained in a memorandum circular issued in by the regulator in 1996, barely a year after internet service became commercially available in the country, she said. “To date, however, no bidding has ever been carried out by the NTC to allocate precious spectrum. The radio frequencies for 2G to 3G have always been assigned to the telcos by the commissioner’s office,” Mirandilla-Santos said. “The reason, according to NTC, is that supply for spectrum has always exceeded demand—something unheard of, as spectrum is considered

a scarce natural resource in most parts of the world.” Mirandilla-Santos, a fellow at ICT policy and regulation thinktank Learning Initiatives on Reforms for Network Economies Asia, said auctions for spectrum allowed other countries to add more money to their reserves. Take Thailand, for example. Bangkok successfully tendered the 900-megahertz (MHz) license to several companies, allowing the Thai government to earn a staggering $4.2 billion. The regulator welcomes this proposal, although for NTC Deputy Commissioner Edgardo V. Cabarios, such an endeavour has its limitations. “We have no problem with that. There are limitations to that, however. Spectrum forms part of the cost of telcos, meaning it’s recoverable. So, there could be effects in the pricing,” he said. Mirandilla-Santos stood by her proposal, citing Thailand as one of the countries with the most affordable mobile-broadband services in Asia, making up only 1.38 percent of its gross national income per capita, compared to the Philippines’s 2.7 percent. “The basis for NTC’s valuation of spectrum is not very clear. When asked, the regulator said that allocation is based on three factors: Demand, amount of available bandwidth and the spectrum’s use or social impact,” she said. Hence, 10 MHz of 3G in the 2100 band would be valued at P65 million, as this would translate to a contribution of P1 per month for each subscriber. An additional 5 Mhz will cost P50 million. “The need to reallocate spectrum is at hand, but observers point to the risks in applying a confi scatory approach based solely on pressure from other— larger—players. Some telecom stakeholders have lamented that key spectrum bands have mostly been allocated to the large telcos without consideration for the

smaller players and new entrants,” Mirandilla-Santos said. She was referring to the potential entry of a third-core player in the duopolistic telecommunications market in the Philippines. Telstra Corp. Ltd. has signified its interest of offering its mobile broadband services in Manila through a joint venture with San Miguel Corp. The food-to-infrastructure conglomerate, one of the most valuable stocks in the local bourse, currently holds the right to operate all of the frequencies under the 700 MHz band. The Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom Inc., the two titans in the local telecommunications space, are currently contesting San Miguel’s right to operate the whole band, which is considered as a global digital dividend. “We are advocating for the immediate harmonization and equitable distribution of the 700 MHz of frequency to sufficiently provide for rapidly increasing data traffic amid growing smartphone use in the country,” Globe President Ernest L. Cu said. Ray C. Espinosa, who heads PLDT’s regulatory affairs and policies office, said his group is studying all legal options on how to move forward with its plea for the reallocation of the frequency. The proposed harmonization is supported by the International Telecommunication Union, which maintains that utilization of the frequency will help bridge the digital divide worldwide. The organization formally moved to allocate the 700 MHz band to the global mobile industry at the 2015 World Radiocommunication Conference in November last year. The ITU’s move on the 700 MHz spectrum is also backed by the GSMA, which said that maximizing on the unused mobile frequency spectrum can potentially increase the impact of a country’s GDP by tenfold. “Once it is assigned, it cannot be recalled without due process. It’s easier, if there are no assignees, like what we did on 3G,” he said. “It’s not easy because of limitations under the law. It’s also in the law that when demand for specific spectrum is higher than availability, then you should hold an auction.” But for Mirandilla-Santos, the regulator must be willing to make hard choices if it wants to help the Philippines rise up from being one of the countries with the slowest Internet speed in Asia and the Pacific. “Different stakeholders value spectrum differently. But one thing is sure: The absence of a spectrum management plan and transparent allocation process are critical issues that affect the quality of mobile,” she said.

”FISHERMEN in San Enrique, Negros Occidental, gather their catch for the day to be sold in the wet market, while some will be taken home for consumption.”

B M G P

ILLIONS of tons of fish caught the world over go unreported each year, a study released on Wednesday by the University of British Columbia (UBC) showed. The study said global fish catch has been underestimated since 1950 and warned that stocks may be declining more rapidly than reported. Researchers Daniel Pauly and Dirk Zeller of Sea Around Us, a research initiative at the UBC, said their study found that global catches between 1950 and 2010 were 50-percent higher than data reported to the United Nation’s Food and Agriculture Organization (FAO) and had been declining more rapidly since catches peaked in the 1990s. Figures from the FAO suggested that global marine fisheries catches increased to 86 million metric tons (MMT) in 1996, while the research team found that catch actually peaked at 130 million tons in 1996. They also argued that about 32 MMT of global fish catch go unreported every year. Pauly and Zeller’s new estimates revealed that annual global fish catch is at about 109 MMT, a 30-percent higher than the

77 MMT officially reported in 2010 to the FAO. The researchers said official data from the FAO lack information on small-scale fisheries, illegal fishing and discarded fish. This is because most countries focus their data-collection efforts on industrial fishing, excluding other categories, such as artisinal, subsistence and illegal fishing, as well as discarded fish, they said. Using a method called “catch reconstruction,” the research duo said they were able to identify catch trajectories differing “considerably” from the official data. Pauly and Zeller, together with hundreds of their colleagues around the world, reviewed catch and related data from more than 200 countries and territories. Using their method, they compared official data submitted to the FAO with estimates obtained from various sources, including academic literature, industrial fishing statistics, local fisheries experts, fisheries law enforcement, human population and other records, such as documentation of fish catch by tourists. “The world is withdrawing from a joint bank account of fish without knowing what has been withdrawn or the remaining balance. Better estimating the amount

PHILIPPINES EYES DENMARK FOR FISH, TECHNOLOGY TRADE T

RADE and industry officials are positioning the Philippines as Denmark’s gateway into the Asean, particularly in fish export and import, as well as fishing technology. This was the message of the Department of Trade and Industry’s Export Marketing Bureau (DTI-EMB) Director Senen M. Perlada during the agency’s country and industry briefing to a visiting 15 company Danish-business delegation. The DTI official said the Philippines is a prime choice for the Scandinavian country to access the rest of Asean, given the country’s strength in the agri-processing. In terms of improving bilateral trade, Danish companies have a big potential to set up trading headquarters or operations in the Philippines because of the opening up of the Asean market, according to Perlada. “I think the Philippines is a very

logical choice for Denmark to consider, as a platform for Asean.” The foreign business delegation is composed of players in the fishing industry, particularly suppliers of technology and seafood processors. The group will be in the country to explore opportunities with Filipino counterparts until today. Perlada said the Philippines has been able to leverage its free-trade agreements (FTA) via Asean, making it now a net exporter of frozen smoked salmon. Through the Asean-Australia New Zealand Free Trade Agreement, the Philippines are able to import the salmon from New Zealand and process them locally before exporting them to viable markets such as Japan. “If you are a brand owner or have clients that are brand owners, I think it would make sense for you to consider the Philippines as a possible platform to supply smoked salmon to other

countries,” Perlada said. Denmark stands as the third-largest fisheries producer with the European Union (EU) bloc. For the Philippines’s side, it also stands to gain from closer trade relations due to the granting of the EUGeneralized System of Preferences Plus (EU-GSP+), as tariffs on over 6,000 Philippine products have been temporarily slashed to zero or significantly reduced. EU’s import tariffs on fishery products, such as canned tuna, canned sardines, fresh chilled tuna and frozen tuna, among other marine products, came from a high of 24 percent. And with the 28-member EU bloc revoking its threat of a yellow card last year, both the Philippines and Denmark are confident the way ahead is clear for better trade and investment relations. A yellow card is a temporary warning that may lead to an

importation ban on fishery products. “We’ve expressed from the EU side earlier, and there is an agreement from the Philippine side to live up to [our] standards of fishing, fighting illegal-fishing practices and fishing vessels because we’re not allowed to import products that have not been made in a legal way,” Ambassador of Denmark to the Philippines, Jan Top Christensen, said in an interview. “But, apart from that, we are looking at the business opportunities for both sides in this sector. We are optimistic that the coming days will be the basis for further negotiations and partnerships.” Based on DTI data, PhilippinesDenmark trade relations have room to improve. Denmark stands as the Philippines’s 48th export market as of 2014, shipping out only $38 million worth of goods to the European nation that year.

As a supplier, Denmark stands as the 32nd-biggest importing source, with the Philippines bringing in goods worth $123 million from Denmark. A considerable hurdle, however, are the steep quality standards imposed in the EU—an area which the Philippines can benefit from if agri-technology is brought in by Danish companies. Denmark’s envoy said there is still untapped potential and encourages more cooperation this year as the two countries celebrate 70 years of diplomatic relations. The business delegation will be meeting with major local players in the fishing industry, such as Frabelle Group Inc., Century Pacific Foods Inc., as well as the Alliance of Philippine Fishing Federation Inc. and Inter-Island Deep Fishing Association. The business delegation was organized by marketing consultancy Andersen Consult. Catherine N. Pillas

we’re taking out can help ensure there is enough fish to sustain us in the future,” Pauly said in a statement. He said accurate catch information is “critical” for helping fisheries officials and managers understand the health of fish populations and inform fishing policies, such as catch quotas and seasonal or area restrictions. In the Philippines, the government recently amended its Philippine Fisheries Code or Republic Act (RA) 10654 which seeks to prevent and eliminate illegal, unreported and unregulated (IUU) fishing in the country. Bureau of Fisheries and Aquatic Resources Director Asis G. Perez told the BusinessMirror the agency has yet to come up with the official figures for the volume of unreported fish taken from Philippine waters. However, he said initial data and monitoring showed improvements since the implementation of RA 10654. “Data and other information and monitoring available suggests a lot of improvement in the number of licensed fishing vessels, thereby improving the reportorial system in a big way. Implementation of rules and compliance has also greatly improved as shown by satellite data in the closed season area and other reports,” Perez said.

BMReports BusinessMirror

A4 Thursday, January 21, 2016

news@businessmirror.com.ph

Six presidential bets joining ‘Pilipinas Debates 2016’

POE

ROXAS

B J R. S J

HE Commission on Elections (Comelec) announced on Wednesday that all six presidential candidates have committed to participate in the series of debates that it has organized along with several media partners in a bid to assist voters in making informed choices during election day on May 9.

DUTERTE

SANTIAGO

BINAY

SEÑERES

During a dialogue between the Comelec, media organizations and political parties on the rules and mechanics of the “Pilipinas Debates 2016,” the camps of Vice President Jejomar C. Binay, administration candidate Manuel A. Roxas II, Sens. Miriam DefensorSantiago and Grace Poe, Davao City Mayor Rodrigo Duterte, and OFW Family Club party-list Rep. Roy V. Señeres all committed to join the series of debates. “It will be good for our voters to see all the candidates. And we are glad that all six of them have promised to attend the debates,” Comelec Chairman Andres D. Bautista told reporters in an interview. The Comelec, together with its media partners that include BusinessMirror and CNN, have scheduled the three presidential

debates in Luzon, the Visayas and Mindanao, while the lone vicepresidential debate will be held in Metro Manila. The first debate has been set at the Capitol University campus in Cagayan de Oro City on February 21 followed by another round in either University of San Carlos in Cebu or University of the Philippines in Iloilo on March 20. The final round of is expected to held at the University of Pangasinan on April 24. This will mark the first time that the Comelec will be holding a series of national debates since the 1992 presidential elections. Under Republic Act 9006 or the Fair Election Act, the Comelec may require national television and radio networks to sponsor at least three national debates

among presidential candidates and at least one national debate among vice-presidential candidates during the campaign period. Poe’s camp, however, said their participation in the debates depend on the would-be ruling of the Supreme Court (SC) in her pending disqualification cases. “Our participation depends on the SC,” lawyer George Garcia said during the meeting. The SC is currently tackling Poe’s petitions seeking the reversal of the rulings issued by the Comelec nullifying her certificate of candidacy (COC) for president due to her failure to prove that she is a natural-born Filipino citizen and for not meeting the 10-year residency requirement. Meanwhi le, Duter te’s lawyer Antonio Kho said he would

recommend to his client to join the debates. “We will strongly recommend to him that he attends the debates,” Kho said. Bautista earlier stressed that the participation of the candidates in the debates is voluntary and not mandatory. The guidelines of the debate have yet to be finalized and are still subject to further amendments. Among the issues being discussed is whether to allow political advertisements to be aired during the commercial segments of the debates which will be aired on national television and radio, and will be streamed online. Bautista earlier said that the Comelec is eying to also conduct debates for the candidates eying local posts.

Passage of law giving govt workers higher pay seen this Congress B J M N.  C

HE leadership of the House of R e p re s e nt at i v e s o n Wednesday vowed to pass the proposed Salary Standardization Law (SSL) before the 16th Congress ends on February 5. Speaker Feliciano Belmonte Jr. said the lower chamber is now looking forward to the start of the bicameral conference meeting on the measure after the Senate recently approved its version of the bill on final reading. Belmonte, however, said the Senate version includes in the coverage the pension increase of the military, the police and other uniformed services retirees. The budget for the coverage of the military and police retirees has not been included in the P57.9-billion appropriation for the original SSL bill endorsed by the Department of Budget and Management (DBM). The P57.9-billion budget has been included in the General Appropriations Act (GAA) of 2016. “Remember that the basic SSL is included in the GAA 2016. If the Senate will add to it, that will be another law,” the Speaker said. “[However,] SSL is something the senators and we know that we have to pass. In the interest of employees, we are determined that the bill passes both houses,” Belmonte said. Earlier, Sen. Vicente C. Sotto III had called for the SSL to be reconsidered in the Senate after Minority Leader Juan Ponce Enrile proposed some amendments to the bill. Enrile pushed for the indexation of the pension of retirees from the Armed Forces and the National Police by including them in the SSL. For his part, House Majority Leader Neptali M. Gonzales II has said that the Senate should not insist on the amendments because the inclusion of retired police and military personnel to the SSL would cost P20 billion in the first year of its implementation alone. T he House of Representatives approved on third and final

reading on December 9, 2015, House Bill 6268 principally authored by the Speaker, which modifies the compensation and position classification system of civilian government personnel and the base-pay schedule of military and uniformed personnel in the government to be implemented in four tranches, starting January 1, 2016. The Senate approved its own version, Senate Bill 2671, on third and final reading on Monday. Belmonte, meanwhile, said the conflicting provisions between the Senate and House versions of the bill will be tackled during the bicameral committee conference. Liberal Party Rep. Isidro T. Ungab of Davao City, chairman of the House Committee on Appropriation said the target date for the bicameral conference committee meeting on the SSL 2015 is on January 27, 2016, to be held at the Senate. “The House appropriations committee will study the Senate version once we get a copy of the measure,” said Ungab. Earlier, Budget Secretary Florencio B. Abad informed lawmakers that the SSL will be effected through a combination of a salary increase, a 14th-month pay, and an enhanced performance-based bonus to be implemented over a fouryear period, from January 2016 to January 2019. Abad explained that the SSL bill is based on Joint Resolution 4 enacted by Congress in 2009, mandating the review of the compensation and position classification system after three years from the last year of the adjustment to determine the competitiveness of government pay in relation to the private sector and the compensation strategy to bring government pay closer to market rate. Abad said the last tranche of the previous salary increase was completed in July 2012. He said despite the substantial duties and responsibilities of public servants, their salaries stand only at 55 percent, or around half, of current market rates.

MPD CITES AMBASSADOR CABANGON D. Edgard Cabangon, president and publisher of Pilipino Mirror, receives a special recognition award in behalf of his father,

Ambassador Antonio L. Cabangon Chua. The award was given by Manila Mayor Joseph Estrada during the 115th anniversary of the Manila Police District (MPD). The event also had Benny Antiporda, MPD District Director Rolando Nana,MPD Press Corps President Francis Nuguit and National Press Club Coalition President Joel Egco as guests. RUDY ESPERAS

Market volatility forces regulator to push back plan to up public float of listed firms

HE current market volatility has forced the Securities and Exchange Commission (SEC) to push back plans to increase the minimum public-float requirement on publicly listed firms. Teresita J. Herbosa, SEC commissioner, told reporters the minimum public-ownership requirement of 10 percent will not be adjusted to 12.5 percent this year. “[The year] 2016 is not a good year to increase the public-float requirement given the high market volatility.” According to its earlier plans, the regulator will impose a 2.5-percent increase in the current 10-percent minimum public-float. Another 2.5-percent will be imposed months

2016 is not a good year to increase the public-float requirement given the high market volatility.”–Herbosa later to increase it to 15 percent. Minimum public float refers to the common shares that a company issues to the public for investors to trade. A law requires companies to offer shares to the public and allow the latter to take part in the profitmaking activities of companies. When the Philippine Stock Exchange (PSE) implemented the increase of the minimum public-float rule to 10 percent in 2011, a number of listed companies decided to voluntary delist themselves from the mar-

ket. The PSE also forced-delisted one firm despite giving most companies a year and a half to prepare. That increase was also part of the general move of the Aquino administration to increase market liquidity and also for efficient price discovery in the stock market. “But then, we have to wait for the right timing,” Herbosa said referring to the plans to increase the public float. Herbosa said the agency’s move aims to make the Philippines’s capi-

tal market on equal footing with its Asean counterparts by having a minimum public-participation requirement of 20 percent to as much as 25 percent. “That is our objective…because in the region, countries such as Hong Kong, Thailand and Singapore, they impose a minimum public float of 20 percent to 25 percent.” The Department of Finance has been vocal on its stand to strictly enforce the 20-percent minimum public-ownership requirement on publicly-listed firms. On Wednesday the benchmark PSE index remained volatile on the back of China’s economic slowdown and a drop in world oil prices, which has reached below $30 a barrel. VG Cabuag

Asean

BusinessMirror Editor: Max V. de Leon • Thursday, January 21, 2016 A5

www.businessmirror.com.ph

Rules for Internet data revolution Asean-EU Perspective

HENRY J. SCHUMACHER

APID developments in technology are changing the world and having a dramatic impact on the way we live, work, communicate and interact and do business. The government and the private sector should, therefore, be setting out an ambitious journey toward achieving a digital economy, highlighting the role of information and communications technology as a key enabler in social, economic and environmentally sustainable growth and development. Part of big data analysis is the development of key strategies for digital marketing: n Connect the dots between online and offline channels and build fluid customer experience with no breaches. n Put mobile at the center of your communications; mobile is building the culture of m-commerce anywhere. n Search for a need beyond “always on,” adding category and lifestyle to the search to connect with fans and not just buyers. n Constantly listen to the social buzz, and respond to negative comments. n Be part of the conversation, generate content that builds “earned media” and tells the brand story. n Understand your digital micro-segmentation; unlike TV, digital targeting can be as precise as a single person. n Amplify the voice of your advocates, these are your most influential and powerful assets—so use them. n Always be adaptable, measure everything and act in real time. But, the digital wave needs data protection. While the Philippines passed the data privacy law two years ago but failed to implement it, different branches of the European Union (EU) have agreed on the shape of the EU’s new data privacy law, which means it is likely to be passed early in 2016 and is fully enacted within two years. This is not one of the arcane legal documents that have little effect on people’s everyday lives. The new rules will drastically change how companies use people’s data and reshape data-based businesses such as advertising and online retail. The idea of the new regulation is to establish the same data privacy rules across the EU—something the European Commission says will result in savings of €2.3 billion a year for businesses—but also to hand to users full control of their personal data, which the EU defines broadly as “any information relating to a data subject,” or natural person. This means companies will have to explain exactly for what information they are collecting, for what purposes and how long it will be retained. They will be forced to disclose all collected information to the user; companies will also have to erase data at the users’ request if they have No legitimate reason for keeping it—an extension of the difficult-to-enforce “right to be forgotten.” Perhaps, more important, companies will have to comply with the principles of “privacy by design” and “privacy by default,” meaning the default settings of any service must ensure that as few data as possible are collected and retained. How this will work exactly are left to the European Commission to spell out, but the very principles involved mean that tech firms will have to rethink their interaction with customers and perhaps their entire business models. Otherwise, they will face fines of up to 4 percent of their global sales. US Internet giants will need to make adjustments if they want to keep operating in Europe. Google and Facebook might be forced to give their users the right to opt out of data collection for advertising purposes. That goes beyond all the changes the companies made to their privacy policies in recent years; it also alters the premise on which these businesses are based. Google and Facebook, among other companies which targeted advertising as the source of nearly all revenues, will have to make do with whatever they collect from the 42 percent of users who don’t mind providing their data for the purpose. Treating data about a person as that person’s property is likely to complicate the work of journalists who are after data, say, on corrupt officials’ offshore companies and properties. Under the current draft of the EU regulation, it will be possible to withhold the data at least temporarily, while the company evaluates the “owner’s” to have it erased. With the threat of big fines hanging over them for withholding the right to be forgotten, Internet firms will be tempted to err on the side of caution. Once the new regulations are approved, tech companies will probably use their significant lobbying power to make specific rules, to be set by the European Commission, more lenient and less disruptive to their businesses. The less success they have the better, not just for Europeans but for all Internet users. In this context it is just not acceptable that the Data Privacy Act in the Philippines remains unimplemented. That’s bad for business, that’s bad for investors, that’s bad for companies around the world that are considering the Philippines as a BPM/KPM location.

Vietnam, with its steady growth, emerges as market standout

NTREPRENEUR Le Thi Hang is scouting sites to open two more convenience stores in Hanoi, encouraged by rising sales at her one-year-old shop.

“I don’t want to miss this chance,” said Hang, 32, who expects revenue to double this year with the expansion. Sales of food items including instant noodles, fish sauce, sugar, bread and milk are rising, she said. While the world’s largest emerging economies, including Russia, Brazil and China, falter, Vietnam’s steady economic growth at near 7 percent this year will make it among the fastest-growing markets in the world. Rising domestic demand and booming foreign direct investment are helping the Southeast Asian nation counter global threats that’s sparked a wave of stock selling and currency depreciation this year.

That comes as the country begins a leadership transition this week that will set the tone for economic reform and growth. The Communist party’s draft socioeconomic plan for 2016 to 2020 shows the nation will target as much as 7-percent average annual expansion. “In a very subdued global environment, domestic demand is king,” said Trinh Nguyen, a Hong Kong-based senior economist for emerging Asia at Natixis SA said. “People in Vietnam are becoming more optimistic about the future. In both the regional and global landscapes, it’s set to outperform.” Vietnam’s economy is forecast to expand 6.7 percent this year, the

same pace as in 2015, according to Bloomberg surveys. Communist par t y officia ls gathering to choose the next party general secretary will also be tasked with setting a growth path that avoids a repeat of past mistakes, including soaring credit growth that saddled banks with bad debt and preferential treatment of state companies that created inefficiencies. “Vietnam is positioned to have another stellar year in 2016,” economists at Australia & New Zealand Banking Group Ltd., led by Eugenia Victorino, said in a report this month. “Nonetheless, the long-term outlook will depend on the outcome of the political changes expected over the next 12 months.” The central bank’s recent efforts to make the exchange rate more flexible will also strengthen macroeconomic stability and help ease pressure on reserves, she said. Meanwhile, private consumption rose 9.3 percent last year, according to government data. Disbursed foreign direct investment surged 17.4

percent to a record-high of $14.5 billion last year from 2014, official data showed. Vietnam’s stock market has also attracted foreign investors, with overseas investors net buyers for the 10th consecutive year in 2015. The benchmark VN Index gained for the first day in five, adding 1.8 percent at the close of trading on Tuesday.

New 5-year plan

THE draft plan shows the government aiming to lift GDP product per capita to $3,200 to $3,500 by 2020 compared with the International Monetary Fund’s estimate of about $2,171 in 2015. Inflation will be kept below 5 percent and the budget deficit capped at 4 percent of GDP. “In 2016 and 2017 we definitely believe that Vietnam is positioned to be one of the fastest growth stories,” Victorino said. “What could derail Vietnam’s fast growth story is if trade deficit widens due to much faster import growth from consumptionrelated items such as automobiles.” Bloomberg News

New call issued for justice for slain Myanmar teachers

SAN LUNG (left ), sister of Maran Lu Ra, and Lu Bu, mother of Hkawn Nan Tsin, participate in a news conference sitting in the foreground of a backdrop featuring Maran Lu Ra and Hkawn Nan Tsin following a memorial service in Yangon, Myanmar, on January 19. Maran Lu Ra, 20, and Hkawn Nan Tsin, 21, ethnic Kachin volunteer teachers, were raped and murdered a year ago in northern Shan state village Kaung Hka, a crime that the Kachin community believed to have been committed by Myanmar army soldiers. AP

ANGON, Myanmar—Members of Myanmar’s Kachin ethnic group called on Tuesday for justice for two young volunteer teachers who were raped and murdered in a case they believe highlights sexual violence by government soldiers. A report on the assault was released as a memorial service was held in Yangon for Tangbau Hkawn Nan Tsin and Maran Lu Ra, who were attacked a year ago on January 19, 2015, in a remote village in Shan state in northern Myanmar while working in an education project run

by the Kachin Baptist Convention. Although Myanmar is primarily Buddhist, most Kachins practice Christianity. Local villagers believe the perpetrators were soldiers who were temporarily based there, an allegation the army has denied. No one has been charged with the crime, which the report says was not properly investigated. Human-rights organizations consider credible the many reports of abuses by government soldiers conducting counterinsurgency operations against ethnic minorities

based mostly in the country’s border regions. The teachers’ case gained an unusual amount of publicity because of sympathy for the victims and the circulation of gruesome photos of the crime scene that circulated on the Internet. Just a few days after the deaths, the US State Department called on Myanmar authorities to bring the perpetrators to justice. State Department Spokesman Jen Psaki said Myanmar had told the US it was looking into the case. The new report, compiled by two

groups—the Kachin Women’s Association of Thailand and the Legal Aid Network—chronicles efforts by authorities to deflect blame from the soldiers suspected of the crime. “Everyone knows who did this crime but we just don’t have the power to investigate the evidence to find out who exactly the perpetrators are,” the Rev. Samson Hkalam of the Kachin Baptist Convention said. “But we won’t stop our investigation. We will never forget this and I believe that we will find out the truth one day.” AP

Largest Thai warehouse operator plans sale via REIT to raise $303 million

HA Corp., Thailand’s biggest publicly traded warehouse operator, plans to sell units in a real-estate investment trust (REIT) after its acquisition of the nation’s biggest industrial developer last year caused debt and funding costs to surge. WHA wants to raise at least 11 billion baht ($303 million) by selling a REIT backed by rental fees from warehouses and factories, CEO Jareeporn Jarukornsakul said in an interview on Tuesday. It also plans

to sell about 30 percent of a water and power unit, which Jareeporn estimates will have a market value of at least 25 billion baht when it begins trading on the exchange in the fourth quarter. The company was forced to sell shares, bonds and some assets to finance last year’s 40-billion-baht acquisition of Hemaraj Land & Development Pcl., whose industrial estates on Thailand’s eastern seaboard house factories operated by General Motors Co., Ford Motor

Co. and Bridgestone Corp. WHA’s diversification into industrial land development is the first step in the company’s planned expansion into Southeast Asia, Jareeporn said. “Concern about our high debt level will significantly ease with the funds from asset divestment,” Jareeporn said in an interview at her office in Samut Prakan, a province near Bangkok. “It will allow us to turn the focus to business expansion in Thailand and other Southeast Asian countries.”

The Hemaraj acquisition increased WHA’s debt to a record 65.6 billion baht, and an ensuing eightfold jump in interest costs in the third quarter caused the company to record its biggest quarterly loss since selling stock to the public in 2012, according to data compiled by Bloomberg. “WHA needs to bring down the leverage as soon as possible,” said Maria Lapiz, an analyst at Maybank Kim Eng Securities (Thailand) Pcl. The company hasn’t benefited from

the Hemaraj deal yet because of the jump in debt and financial costs, she said. WHA’s shares climbed 1.5 percent to 2.70 baht at the midday break on Wednesday, poised for its first gain in five days, while the SET Index dropped 0.8 percent. The stock has dropped 5.6 percent this year, compared with a 2.5-percent decline in the benchmark equity gauge. The sale of the REIT and shares in a unit that supplies water and power to the industrial estates will

help trim WHA’s debt-to-equity ratio to about 1.38 from a multiple of 3.33 at the end of September, Jareeporn said. WHA plans to delist shares of Hemaraj from the stock exchange in February, enabling it to sell the developer’s assets to the REIT, Jareeporn said. The company may invest in industrial estates or power and logistics businesses in countries including Cambodia, Indonesia, Lao PDR, Myanmar and Vietnam, she said. Bloomberg News

TheBroa Ducking the political backla

Business

A6 Thursday, January 21, 2016

B D C  J M N.   C

HE veto made by President Aquino on the approved bill raising Social Security System (SSS) monthly pensions by P2,000 is sure to have political repercussions, according to experts. And now, it appears that nobody wants to take a hit from the presidential veto, with the May elections just months away.

With the SSS pension bill being admittedly a highly popular bill, administration allies are passing the blame among themselves, fearful that this hot issue remains in their hands and could dampen their chances of getting re-elected in May. Malacañang officials said that their inputs, which eventually led to the presidential veto, did not even consider the political backlash that the highly popular proposal would have on administration candidates, since the decision involved the very lifeblood of the SSS fund. However, the preoccupation with the political repercussions of the veto among administration allies

cannot be denied, as Malacañang officials said that it was an easy decision to make between the interests of 2.1 million SSS pensioners, as against 11 million active SSS members, who might be discouraged to contribute further into the SSS fund if it appeared to be at risk of being dissipated before they get to retire. University of the Philippines National College of Public Administration and Governance (UP-NCPAG) Dean Ma. Fe V. Mendoza said the political advisers of the President are political animals who could not have missed the political repercussions of advising the veto. But she said the issue of who should take

the blame for the veto could not have arisen if only the members of Congress did their homework by providing for funding for the proposed P2,000 acrossthe-board pension increase. Mendoza said the policy decision on whether to veto the approved bill should not have only considered the number of votes that will be swayed by either action in the next elections, but should have considered the totality of pros and cons that the proposed pension increase would give rise to. “As leader of the country, the consideration should not only be about whether it would be prudent or not. At the end of the day, it should affirmatively answer the question of whether such action would be fair to all concerned,” she said. In the Senate, Senate President and Liberal Party (LP) Chairman Franklin M. Drilon, who endorsed the vetoed bill, pointed to the House of Representatives as the body which should initiate an override of the veto still being hoped for by the 2.1 million SSS pensioners. Drilon pointed out that under the Constitution, since the bill originated in the House of Representatives, then the vetoed bill shall return to it and it can start the override process by a two-thirds vote of all its members. After that, the returned bill shall be transmitted to the Senate where the override of the veto could be completed through another

two-thirds vote of all the members of the Senate. But Speaker Feliciano Belmonte Jr. could not even muster his allies to produce a quorum during the remaining session days before Congress adjourns on February 6. Instead, Belmonte seemed to beat around the bush and broached several other alternatives to appease the SSS pensioners, who were already expecting that the approved bill would at least just lapse into law. These alternatives range from providing an SSS pension increase of P500 or P1,000, which allegedly could be done by the SSS on its own without waiting for Congress to pass a law. These alternatives, however, merely muddle the issue, ostensibly so it can gradually die a natural death.

Deflecting the backlash BELMONTE also tried to deflect the blame from the House of Representatives and his allies who are seeking reelection by saying that the SSS pension increase had a “sister bill,” which the Senate failed to pass, thus, necessitating a veto by the President to save the SSS fund from dissipating. The supposed sister bill would have raised the SSS contributions to fund the proposed P2,000 across-the-board increase in monthly pensions. The SSS leadership itself had some efforts to deflect the political repercussions of the veto away from administration candidates,

saying the pension increase was a subsidy that would have been given mostly to those pensioners who do not need such subsidy. However, a closer analysis will reveal that his argument does not hold water, since the SSS itself admitted that the average pension is only P3,169 per month, clearly the amount that’s being received by a pensioner who, indeed, needs the help. Despite these efforts to deflect the political backlash, Mendoza said that it is the President who will have to bear the brunt of the public opinion against the veto, not a congressman who is now being lobbied upon by his constituents to join the effort to override the veto, but who can do nothing unless two-thirds of his colleagues would also join that effort.

Roxas to take hit BUT since the President is not a candidate in the next elections, it would be his anointed one, former Interior Secretary Manuel A. Roxas II, who would suffer the political consequences of the presidential veto in the next elections, another political analyst said. Former UP-NCPAG Dean Edna Estifania Co said the public would associate the effects of the veto on the President and on his favored successor. “There’s definitely a negative repercussion in terms of politics because it is already

As leader of the c consideration sho whether it would be pru end of the day, it should the question of whether fair to all concerned.” —

the political season. And because the President has the veto power, the people will identify that decision to him and to his candidate,” Co said .

‘Band-Aid solution’

THE bid of Palace allies, meanwhile, to pass the measure empowering the SSS to increase its contributions, only seeks to provide Band-Aid solution to the political and social backlash brought about by President Aquino’s veto of the bill increasing the pension of SSS members, lawmakers said. Party-list Rep. Luz Ilagan of Gabriela said the administration is only diverting the issue to save the LP bets from public anger. Belmonte Jr. was quick to find a solution to salvage his group from political storm by asking the Senate to enact the sister bill—House Bill 6112—empowering the SSS board to increase the contribution of its members with just six

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sMirror

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ash of the SSS pension mess

country, the ould not only be about udent or not. At the d affirmatively answer r such action would be —Mendoza

days left in the 16th Congress. Belmonte said Senate President Franklin M. Drilon has committed that “the Senate will do its best to pass HB 6112.” Ironically, the failure of the Senate to pass this House Bill 6112 also led to the now-controversial presidential veto of the proposed P2,000 hike in SSS pension. After this, Congress will write a letter to Palace to urge President Aquino to order the SSS board to implement a P1,000 hike in SSS pension. The amount is a compromise to the original P2,000 pension hike. But Ilagan countered: “Why is he [Belmonte] talking about P1,000? The bill is P2,000. The P1,000 is a counterproposal. The move is misleading because the bill they want to pass is to empower and strengthen the SSS, which is entirely different from the P2,000 pension-hike bill. Even if you empower or strengthen the SSS as an agency,

what is the assurance that they will provide what the people is asking for,” Ilagan said. “They are diverting the attention from the President, who is now perceived as very insensitive, anti-poor and anti-contributors. They are doing this to prevent the backlash, which is affecting [Liberal Party standardbearer Manuel] Roxas [II]. The Liberal Party bets are experiencing the backlash because of this wrong decision of the President,” Ilagan said. President Aquino’s veto not only drew the ire of the public, particularly senior citizens, but that of lawmakers and the Catholic Bishops’ Conference of the Philippines, as well.

Missed legacy PARTY-LIST Rep. Rodel Batocabe of Ako Bicol said Congress can start considering overriding the President’s veto now or leave it to the next Congress. “ It could have been one of the great legacies [of the administration],” said Batocabe, adding, “the next administration can certify urgent a bill that will increase contribution in the event that an increase in pension will drastically prejudice the financial position of the SSS.” Party-list Rep. Antonio Tinio of ACT Teachers said President Aquino has denied desperately needed relief to 2.1 million SSS pensioners, many of whom receive as little as P1,200 per month.

“The Senate’s inaction is merely a pretext used by Malacañang to deflect criticism of the President’s veto. The president currently has the power to authorize an increase in premium contribution rates, as he did in 2014,” Tinio said. Independent Bloc leader and Lakas Rep. Martin Romualdez of Leyte said President Aquino’s decision to veto the pension hike shows lack of compassion and concern to the plight of pensioners and their dependents who badly need the increase. “Surely, this could have dire consequences or serious backlash on the ability of his candidates to woo the support of the electorate in the coming polls. This [P2,000 pension hike] could have been a good legacy of his administration had he not vetoed,” Romualdez said. Also, Nationalist People’s Coalition Rep. Rodolfo Albano III of Isabela agreed that the decision of President Aquino to veto the bill might have repercussions on the popularity of Roxas. “The decision of the President might adversely affect his candidate[s],” said Albano, House contingent head for the minority bloc of the Commission on Appointments. President Aquino has vetoed the enrolled HB 5842, which provides for a P2,000 across-the-board increase in the monthly pension of SSS pensioners and adjustment of the minimum monthly pension from P1,200 to

P3,200, for members who have contributed the equivalent of 10 credited years of service (CYS), and from P2,400 to P4,000, for those with at least 20 CYS.

Override PARTY-LIST Muna Rep. Neri Colmenares, one of the principal authors of the pension bill, challenged the leadership of the House of Representatives and the Senate to override President Aquino’s veto. “We [the Makabayan bloc] will still push through with the campaign to override the veto of the P2,000 pension hike. They can study the P500 and P1,000 hike, but this does not preclude us from pushing for the P2,000 pension hike,” Colmenares said. Party-list Rep. Fernando Hicap of Anakpawis called on various sectors to push for the override of the veto, saying that he directed the group’s chapter members, supporters, as well as local government officials to press their respective representatives to vote against the veto. Under Article VI, Section 27 of the 1987 Constitution, Congress could pass a bill into law despite the President’s veto if two-thirds of the members of each chamber vote for its approval. At least 194 of the 290 remaining House members would have to vote to approve a vetoed measure to overturn the President’s opposition to it. NPC Rep. Sherwin Gatchalian of Valenzuela said his political party is considering

calling for an override of the presidential veto. “Actually, the NPC is considering the [override] call as a party. We believe our senior citizens should get fair assistance from the government. We’re contemplating the override. The NPC is the second-biggest party [following the Liberal Party] in Congress with over 50 members, but we’re still studying that until now,” Gatchalian said.

Easy and convenient LP Rep. Jerry Trenas of Iloilo, meanwhile, said it is actually easy and convenient for President Aquino to simply sign the proposed P2,000 pension increase. But as “a true and responsible leader, he opted to veto the measure to ensure the viability and sustainability of the state-run social insurance agency even in the future.” “If only for the purpose of becoming popular, especially now that he is batting for continuity of his daang matuwid governance, the President could have easily signed the proposed measure and let the next leaders after him bear the brunt of trying to keep the SSS afloat in the future. He didn’t, even if it means he would really look bad to millions of SSS members. The President chose to do the right thing and not one that is simply popular,” Trenas said. Trenas added that this issue would certainly be used against Roxas. But knowing President Aquino, his commitment

to do what is right for the country is paramount over personal politics. He added the relief that will come from the proposed 2,000 across-theboard pension for private-sector retirees, is only short and temporary, but the pain and anguish that it could bring to the next generation of retirees would be long and excruciating.

‘Solomonic’ NATIONAL Unity Party Rep. Elpidio Barzaga Jr. of Dasmariñas City said the President is being demonized for vetoing the bill, when he should be appreciated for his “Solomonic” act. Barzaga, a senior administration ally at the lower chamber, said the President is being unfairly criticized for making a tough but right decision, which saved the SSS from potential bankruptcy. Barzaga added that the president has never been a shirker when faced with difficult decisions, regardless of the political repercussions. He said Mr. Aquino “should be commended for showing his resolve in going against popular but unsound pieces of legislation, something that takes a lot of courage to do.” “P-Noy has been drawing heavy flak again for making an unpopular but right decision. Such a Solomonic act should be appreciated because the country will be the one to benefit in the long run,” Barzaga said. “The President’s decision makes complete sense.”

Thursday, January 21, 2016

US wants more pressure on China to help on North Korea sanctions

EOUL, South Korea—A senior US diplomat stepped up pressure on China on Wednesday to cooperate on new, tough sanctions meant to make North Korea suffer for a recent nuclear test that raised worries about advancements in its bomb program. US Deputy Secretary of State Antony Blinken was in South Korea on a diplomatic push for tougher sanctions that can force change in the North. Key to those efforts is whether China, the North’s last major ally and a veto-wielding UN Security Council member, will join in imposing any harsh punishment on the North. “We believe that China has a special role to play given the special relationship that it has with North Korea,” Blinken told reporters after meeting with South Korean officials. He said Beijing has “more influence and leverage” over Pyongyang than any other country because most its trade goes from, to or through China. Blinken flies to Beijing later on Wednesday for talks on North Korea. During a meeting with South Korean Foreign Minister Yun Byung-se, Blinken said Seoul and Washington are working closely in New York with the UN Security Council. Yun said it is time for the international community to stand united to make North Korea face the consequences for its bomb test. “This is North Korea versus international community,” he said. China is expected to join in some UN sanctions but won’t likely go as far as to take steps that might lead to the collapse of the North’s authoritarian government. China fears the onslaught of a wave of refugees and violence surging across the border, analysts say. AP

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High court could give Obama his final chance on immigration

ASHINGTON—After seven years, 2 million-plus deportations, two executive actions and 720,000 “Dreamers” who were brought to the US illegally as children, the bottom line on President Barack Obama’s immigration record still remains an open question for many immigrants and their advocates. In the end, the US Supreme Court may fill in the blanks. By agreeing to hear a challenge to Obama’s immigration plan, the court on Tuesday raised hopes that Obama may have one last chance to make good on an unfulfilled promise to millions of immigrants, many of whom feel abandoned by his administration’s recent deportation raids. If the court sides with Obama, ruling that he has the authority to unilaterally shield up to 5 million immigrants from deportation through executive orders that bypass Congress, Obama would claim a sizable last win on an issue that has dogged him for years. His administration would, however, face

another challenge—implementing a complex program in a matter of month, as Republicans vow to reverse it just as quickly. If t he cour t r u les aga inst Obama, he could spend his last months in office making headlines for deporting people, rather than shielding them from deportation, as he had planned. At issue are Obama’s executive actions to allow parents of US citizens to stay in the country, along with an expansion of Obama’s earlier program protecting people brought to the US illegally as children—known as Dreamers. Lower courts have put those programs on hold amid claims Obama exceeded his authority, but the Supreme Court

agreed to have the final word. Advocates said they see the pivot point as a reflection of the seesaw nature of Obama’s record on the issue. Despite his efforts to pass immigration legislation and use his executive power to protect some immigrants, his broader deportation policy led activists to label him the “deporter-in-chief ” and left wounds some say won’t be healed. Most recently, advocates were incensed by deportation raids targeting 121 Central American immigrants, arguing the raids sowed fear and skepticism in a community that could make it harder for advocates and the administration to persuade people to come forward later. Angela Maria Kelley, an immigration expert at the liberal Center for American Progress, likened Obama’s policies to a “high school romance: One minute you’re in love, the next you’re being dumped. “It does feel like it can take on a bipolar presence in the community,” Kelley said. The Supreme Court is expected to rule on Obama’s executive action by late June. That would leave Obama with barely half a year to get the program up and running before his presidency ends. Most of the Republicans running to replace Obama have already vowed to

tear up the program if elected. The Democratic presidential candidates have pledged to maintain or even broaden the measures. Obama’s expanded program for people brought here as children was hours away from being launched last year when a judge put it on hold, so ostensibly, the administration could f lick the switch on almost overnight with little additional preparation. But the much larger program for parents of US citizens wasn’t nearly as far along when the court shut it down. Ahead of the injunction, US Citizenship and Immigration Services had secured office space in Arlington, Virginia, for a new processing center, with plans to hire about 1,000 people to screen applications. But the administration would have to hire and train those workers, finalize the forms and application process, and disseminate that information to applicants. Administration officials predicted that could take anywhere from a few weeks to a couple of months. By comparison, it took 60 days to launch the initial program covering people brought here as children. “We’re certainly interested in moving forward with implementing these executive actions as expeditiously as possible,” White House

Spokesman Josh Earnest said. Another hold-up could come from applicants, who would need to pull together application fees and documents proving they’ve been in the country for years. How quickly the government could process applications is another question. In the first six months of Obama’s earlier program for people brought here as children, 200,000 were approved out of roughly 423,000 applications. Working against the president is deep uncertainty about what happens to those who apply for protection if a Republican, who opposes Obama’s actions, wins the White House. New applications would almost certainly be halted, but immigration advocates predicted the next president would find it harder to retract work permits from those approved before Obama leaves office. “There’s a real question right now of whether people are safe from deportation, not the least because in the last few weeks we’ve seen increased raids by the president,” said Karen Tumlin, legal director at the National Immigration Law Center. “But folks are so eager to have the protections from family separation, if the chance does present itself, I would anticipate a tremendous outpouring of interest.” AP

China state television broadcasts confession from detained Swede

EIJING—Chinese state television has aired a confession made in detention by a Swedish cofounder of a human-rights group, who said he had trained and funded unlicensed lawyers in China to take on cases against the government “in clear violation of the law.” In a 10-minute segment aired late Tuesday and early Wednesday, state broadcaster CCTV detailed how Peter Dahlin established an activist organization in Hong Kong with the help of employees from the human rights-focused Fengrui Law Firm in Beijing, whose lawyers have been recently charged with subverting state power. Dahlin’s group has called the confession “apparently forced” and rejected accusations that it manufactured or escalated conflicts inside China. In the past year, China’s government under President Xi Jinping has aggressively cracked down on the country’s increasingly assertive legal-rights groups, framing their advocacy as a destabilizing force to state security. Authorities formally charged four well-known Fengrui lawyers last week, six months after hundreds of lawyers nationwide were rounded up and accused of stirring up hostility toward the government and manufacturing cases to enrich themselves. Dahlin was arrested on January 3 on his way to Beijing’s international airport, becoming the first foreign worker to be entangled in the crackdown that has drawn widespread condemnation from foreign governments and overseas human-rights groups, which have urged Beijing to abide by its promise to rule by law. Dahlin’s organization in Hong Kong, which was not legally permitted to operate in mainland China, accepted foreign funding and paid lawyers and petitioners within China, who, in turn, provided negative information that tarnished the country’s image, according to the state media reports. “Certain people that we have supported in one time or another have gone on to do acts in clear violation of the law,” Dahlin said in his televised confession, while apologizing for hurting “the Chinese

FOREIGN diplomats, left, stand with Chinese policemen after being denied entrance to the Beijing No. 2 People’s Intermediate Court where human-rights lawyer Pu Zhiqiang was sentenced in Beijing, China, on December 22, 2015. Pu, one of China’s most prominent humanrights lawyers, left a detention center on Tuesday after receiving a suspended prison sentence in a case involving online comments critical of the ruling Communist Party. AP

government and Chinese people.” He also said he had “no complaints to make” and that he had been treated fairly while in detention and provided medication he needed. The official Xinhua News Agency cited witnesses as saying Dahlin had been planted by “Western anti-China forces” to gather negative information about China and fan opposition to the ruling Communist Party. The CCTV segment about Dahlin came one day after the Chinese government released a taped confession

by another detained Swede, Gui Minhai, a Hong Kong-based publisher of sensitive books banned on the mainland who disappeared in October. Swedish Embassy Spokesman Sebastian Magnusson said the embassy had no comment on the CCTV report, but said that Swedish representatives had met with Dahlin and that he was “OK considering the circumstances.” Chinese authorities since 2013 have frequently used televised confessions of dissidents and activists on state TV ahead of

their trials, swaying public opinion against them, although legal experts say the tactic violates Chinese law. The confessions are filmed by the state broadcaster CCTV and appear to be voluntary, though they often are believed to be coerced by police. At least 18 such confessions have been made by high-profile activists, bloggers and journalist. Whistle-blowing journalist Liu Hu, accused of spreading falsehoods and detained in 2013, said in an interview he was cajoled for

months to give such a confession, but that he refused. Liu, who had reported on corruption in his home city of Chongqing, eventually was released in 2014 and later cleared of charges. Dahlin’s group says it has been working since 2009 to help advance the rule of law by organizing training programs by lawyers for rights defenders focusing on land rights and administrative law. It also releases practical guides on the Chinese legal system. China has a huge number of petitioners who have unresolved complaints

against local governments, often involving land seizures. Dahlin’s group says it “has only ever advocated nonviolent, informed reliance on Chinese law,” and that Dahlin was “arbitrarily detained on spurious accusations.” Endangering state security is a category in China’s criminal law that includes a number of offenses, including subversion of state power, separatism and espionage. The maximum sentence for some is the death penalty, although it also allows for foreigners to be deported. AP

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Thursday, January 21, 2016

Canada left out from anti-Islamic State coalition meeting in Paris

ORONTO—Canada has been excluded from a meeting of defense ministers in Paris this week to discuss the fight against Islamic State (IS) militants. The apparent snub follows new Canadian Prime Minister Justin Trudeau’s vow that he would remove the country’s six fighter jets from the anti-IS coalition and at a time the US is looking for its allies to step up their contributions.

US Defense Secretary Ash Carter didn’t mention Canada last week in a speech in Fort Campbell, Kentucky, when he said he would meet defense ministers from nations who are playing a “significant role” in the coalition. Defense Minister Harjit Sajjan tried to suggest it wasn’t a big deal on Tuesday, saying this isn’t the only meeting. Ministers from the Netherlands, France, Australia, Germany, Italy and Britain will take part in the talks on Wednesday. Carter wasn’t asked about Canada by reporters on the flight to Paris, but he was asked about the lack of any Arab representation at the meeting. In response, Carter said that this was a gathering of

countries that have been the most active in Iraq and Syria. He said other nations have made contributions and will continue to do so, but this meeting was not designed to exclude anyone, “it’s to get more ideas for how we can do more.” The US has asked coalition members to boost their military contributions in Iraq and Syria against IS after the deadly attacks in Paris last November. Trudeau long ago said Canada would pull its jets and made it a part of his election campaign. After he won the November 19 election, he said allies understand that Canada will step up military training for forces fighting IS. Canada has had 69 special forces soldiers in a

training role in northern Iraq with the Kurds. A Canadian soldier was killed by Kurdish fighters in a friendly-fire incident last year. The Canadian mission includes six CF-18 fighter jets, a refueling tanker aircraft, two surveillance planes and one airlift aircraft, with about 600 airmen and airwomen based in Kuwait. The Canadian jets continue to participate in air strikes, and it is unclear when Canada will remove the planes. Australia has six jet fighters and has soldiers in noncombat roles in the Iraqi capital of Baghdad. It has declined a US request to do more. The Netherlands has four fighter jets in the mission, while Germany is not involved in air strikes. AP

Kurdish forces deliberately destroy Arab villages–report

RBIL, Iraq—Iraqi Kurdish forces are deliberately destroying Arab villages under their control, according to an Amnesty International (AI) report released on Wednesday. The human-rights group said these actions could amount to war crimes. Kurdish forces have bulldozed, blown up and burned down thousands of homes in Arab villages recaptured from the Islamic State group, the report said. “The forced displacement of civilians and the deliberate destruction of homes and property without military justification may amount to war crimes,” said Donatella Rovera of AI in a statement. Rovera, who carried out the field research for the report, said the group also found that Arab civilians were barred from returning to their villages by Kurdish forces. The Kurdish Regional Government (KRG) in Iraq has said civilians are being prevented from returning to their homes for their own safety, citing the dangers of explosive booby-traps and homemade bombs that IS often leaves behind when it retreats. AP

Dubai tower blaze shows risks in common building material

UBAI, United Arab Emirates—Within minutes, the revelry of New Year’s Eve in Dubai turned to horror as those gathered for fireworks downtown watched flames race up the side of one of the glistening city’s most prominent luxury hotels. But the fire at the 63-story The Address Downtown Dubai wasn’t the first, second or even third blaze to spread swiftly along the exterior of skyscrapers that have risen from the desert at a torrid pace in and around Dubai over the past two decades. It was at least the eighth such fire in the Emirates alone, and similar blazes have struck major cities across the world, killing dozens of people, according to an Associated Press survey. The reason, building and safety experts say, is the material used for the buildings’ sidings, called aluminum composite panel cladding. While types of cladding can be made with fire-resistant material, experts say those that have caught fire in Dubai and elsewhere weren’t designed to meet stricter safety standards and often were put onto buildings without any breaks to slow or halt a possible blaze. While new regulations are now in place for construction in Dubai and other cities, experts acknowledge they have no idea how many skyscrapers have the potentially combustible paneling and are at risk of similar fast-moving fires. “It’s like a wildfire going up the sides of the building,” said Thom Bohlen, chief technical officer at the Middle East Center for Sustainable Development in Dubai. “It’s very difficult to control and it’s very fast. It happens extremely fast.” Cladding came into vogue over a decade ago, as Dubai’s building boom was well under way. Developers use it because it offers a modern finish to buildings, allows dust to wash off during rains, and is relatively simple and cheap to install. Dubai has since burgeoned into a cosmopolitan business hub of more than 2 million people. As in other Emirati cities, foreign residents far outnumber the local population. Expatriate professionals, in particular, are drawn to the ear-popping apartments the city’s hundreds of highrises offer, and skyscraper hotels accommodate millions of guests each year. The city-state aims to attract 20 million visitors annually by the time it hosts the World Expo in 2020. That means the risk of high-rise fires touches people from all over the world. Typically, the cladding is a halfmillimeter (0.02-inch) thick piece of aluminum attached to a foam core that is sandwiched to another similar skin. The panels are then affixed to the side of a building, one piece after another.

70% Towers in Dubai that may contain polyethylene core– experts The biggest problem lies with panel cores that are all or mostly polyethylene, a common type of plastic, said Andy Dean, the Mideast head of façades at the engineering consultancy WSP Global. “The ones with 100-percent polyethylene core can burn quite readily,” Dean said. “Some of the older, even fire-rated materials, still have quite a lot of polymer in them.” The panels themselves don’t spark the fires, and the risks can be lessened if they are installed with breaks between them to curb a fire’s spread. The panels’ flammability can be significantly reduced by replacing some of the plastic inside the panels with material that doesn’t burn so easily. However, when installed uninterrupted row after row, more flammable types of cladding provide a straight line of kindling up the side of a tower. That was the case in 2012, when a spate of fires struck Dubai and the neighboring emirate of Sharjah. Blaze after blaze, though some ignited differently, behaved the same way: fire rushed up and down the sides of the buildings, fueled by the external panels. The day after an April 2012 fire at a 40-story building in Sharjah, Dubai issued new building regulations barring the use of cladding constructed with flammable material. Officials elsewhere in the United Arab Emirates followed suit, though by that time, the building boom had subsided in the wake of a global recession. But the rules did not call for retrofitting buildings with flammable cladding already installed—nor is there any clear idea of how many of these buildings stand in Dubai or the UAE’s other six emirates. Local experts have suggested as many as 70 percent of the towers in Dubai may contain the material, though they acknowledge the figure is only an estimate as there are apparently no official records. “There’s an exposure because there’s a lot of them and, unfortunately, they don’t come with an ‘X’ on the building to know which ones they are,” said Sami Sayegh, global property executive in the Middle East and North Africa for insurance giant American International Group Inc. AP

IN a December 1, 2015, file photo, Spike Lee attends the premiere of Chi-Raq at the Ziegfeld Theatre in New York. Calls for a boycott of the Academy Awards are growing over the Oscars’ second straight year of mostly white nominees, as Spike Lee and Jada Pinkett-Smith each said on January 17 that they will not attend this year’s ceremony. AP

Calls for boycott over diversity throw the Oscars into turmoil N

EW YORK—Growing calls for a boycott of the Academy Awards over the lack of diversity among this year’s Oscar nominees are forcing stars to choose sides and threatening to throw the movie industry’s biggest night of the year into turmoil. The backlash over the second straight year of all-white acting nominees is also putting heavy pressure on the Academy of Motion Pictures Arts and Sciences to diversify its overwhelmingly white male membership. The furor grew on Tuesday when the Rev. Al Sharpton said he would lead a campaign encouraging people not to watch the February 28 telecast. On Monday Spike Lee, this year’s Oscar honoree for lifetime achievement, and Jada Pinkett Smith announced they will boycott the ceremony in protest. Academy president Cheryl Boone Isaacs, who has led efforts to diversify the academy, responded late Monday evening with a forceful statement saying that those previous measures weren’t enough. Isaacs, the academy’s first African American president, said that “it’s time for big changes” and that she will review membership recruiting to bring about “muchneeded diversity” in the academy’s

ranks. At a Los Angeles gala honoring Boone Isaacs on Monday night, actor David Oyelowo—who was famously snubbed last year for his performance as the Rev. Martin Luther King Jr. in Selma—expressed frustration with the academy. “This institution doesn’t reflect its president and it doesn’t reflect this room,” Oyelowo said. “I am an academy member and it doesn’t reflect me and it doesn’t reflect this nation.” Other stars began weighing in. George Clooney, in comments to Variety, said that after earlier progress by the industry, “you feel like we’re moving in the wrong direction.” He noted that movies like Creed, Straight Outta Compton, Beasts of No Nation and Concussion may have deserved more attention from the academy. “But honest ly, there shou ld be more oppor t unit y t han t h at ,” C lo one y s a id . “ T he re shou ld be 20 or 30 or 40 films of the quality that people would consider for the Oscars. By the way, we’re ta lk ing about A fr ican A mer icans. For Hispanics, it’s even worse. We need to get better at this. We used to be better at it.” A 2012 Los Angeles Times study found that the academy was 94 -percent white

and 77-percent ma le. UCL A’s l atest annua l Hol ly wood Diversity Report concluded that women and minorities are substantially underrepresented in front of and behind the camera, even while audiences show a strong desire for films with diverse casts. Hispanics and African Americans go to the movies more often than whites do. UCLA surveyed film and TV executives and found that 96 percent are white. In his comments on Monday, Lee said the Oscars’ problems ultimately reside with “the gate keepers” who have the power to green-light projects. Isaacs enlisted Chris Rock, who famously called Hollywood “a white industry” a year ago, as host of this year’s ceremony. The backlash all but ensures Rock’s opening monologue will, for many, be the most anticipated event of the show. Last year’s broadcast, hosted by Neil Patrick Harris, was also boycotted by some viewers because of the all-white slate of acting nominees. Ratings dipped to a six-year low for ABC. Some on Tuesday put pressure on Rock to join the boycott. The rapper 50 Cent urged on Instagram: “Chris, please do not do the Oscars awards.

You mean a lot man, don’t do it.” A representative for Rock didn’t immediately respond to an e-mail. One person emphatically not on board with the boycott was actress Janet Hubert, who starred with Will-Smith on the 1990s sitcom The Fresh Prince of Bel-Air. In a video posted on Facebook, she lambasted Pinkett-Smith for asking actors to jeopardize their career for an insubstantial cause. “There’s a lot of s--- going on the world that you all don’t seem to recognize,” Hubert said. “People are dying. Our boys are being shot left and right. People are starving. People are trying to pay bills. And you’re taking about some motherf------ actors and Oscars. It just ain’t that deep.” Just how much more Boone Isaacs can do to promote diversity at the academy, where membership is for life, remains to be seen. Last November she launched a five-year initiative to encourage more diversity in Hollywood, called A2020. But Boone Isaacs noted there is some precedent for more drastic steps. In the late 1960s, for example, academy president Gregory Peck tried to inject more youth by stripping many older members no longer working in the industry of the right to vote. AP

A10 Thursday, January 21, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

We are getting obese

ORE and more Filipinos are getting obese. And the country’s journey to the unhealthy state of national corpulence has already shifted into high gear. A BM report confirmed this trend. Citing figures from the Food and Nutrition Research Institute (FNRI), the report established the growing prevalence of obesity among adult Filipinos: from 16.6 percent in 1993 to 29.9 percent in 2013. In other words, three of every 10 Filipino adults are obese.

Here’s the alarming part: The FNRI saw a yearly increase in the number of obese children (0-5 years of age) at an average of 0.17 percent. There is also a yearly increase of 0.33 percent for children ages 5.8 to 10, and 0.34 percent for adolescents. The operative word is “yearly,” which means the problem will accelerate every year if not effectively addressed soon. We have time to beg off from joining a global phenomenon, dubbed “globesity,” by the World Health Organization (WHO). The global obesity problems stem from increasingly sedentary lifestyles, combined with a growing consumption of convenience foods. In the Philippines, as in other countries, a growing number of people prefer eating snacks rather than meals. This is not healthy because most of the snack foods available are low in micronutrients but high in salt, fat and sugar content. We eat commercial foods stripped of nutrients and loaded with chemicals to guarantee a long shelf life, and engineered taste so people will be able to eat more. Rampant snacking of sweet and savory junk food has been fingered as the culprit behind the globesity crisis. It has been suggested that irresponsible marketing and greed led to giant serving sizes and the explosion of the fastfood industry. Our most accessible foods today have very little to do with good nutrition. And because we are not educated about nutrition and proper diet, we do not make the connection between food and wellness. A study by Brian Wansink, Cornell University’s Food and Brand Lab director, noted that overeating can stem from the individual not knowing when he or she is already full. Wansink saw the obesity epidemic driven by readily available and affordable food doled out in large portions—such as eat-all-youcan buffets that tempt you to eat more than you usually do. Described as pandemic, the global spread of obesity is loaded with affliction: Increased incidence of Type 2 diabetes and its associated complications, increased risk of cardiovascular disease and increased risk of cancer. The WHO noted that obesity and being overweight ranked fifth among the leading risks of global deaths, with 2.8 million adults dying each year due to this medical condition. Fortunately, you can avoid getting obese just by being mindful when you eat. Choose nutritious foods like fruits and vegetables, and be wise to use the OS-OM formula to junk junkfood—out of sight, out of mind. Follow the Japanese tradition called Hara Hachi Bu, which means “eat until you are 80 percent full.” This is one sure way to avoid overeating and getting obese.

Doomsday 2016 John Mangun

OUTSIDE THE BOX

HE world is a confusing place. Exactly one year ago, when the Philippine Stock Exchange Composite Index (PSEi) was reaching a new historic high, government officials and stock-market analysts were repeatedly telling me that the market was accurately reflecting the great economic conditions in the Philippines. Now, those same experts are saying that the PSEi is not accurately reflecting the great economic conditions that we are experiencing.

It is difficult for a simple-thinking man like me to know what to believe anymore. I see the PSEi down 10 percent in 2016, while an economistsupporter of a particular presidential candidate tells me that economic growth has never been any better in the last 30 years. Yet, when I look at the annual economic growth measured on a quarter-on-quarter basis, the trend has been going down for 24 months. In the middle of 2013, the growth was 7.9 percent and the last quarterly number is 6 percent. It is also difficult to believe that on January 5th, I wrote to “Expect the best, plan for the worst, and prepare to be surprised.” I said that because I am surprised how little time I have had to plan for the worst, which seems to be coming every day.

William the Conqueror of England ordered the “Great Survey” of most of England and Wales in 1086. In Middle English, it was called the Doomsday Book, later in the 12th century it was called the Domesday Book. The book was basically a tax assessor’s record of all landholdings and livestock in the kingdom. One hundred years later a court bureaucrat, Richard FitzNeal, wrote: “For as the sentence of that strict and terrible last account cannot be evaded by any skilful subterfuge. That is why we have called the book ‘the Book of Judgement’...because its decisions, like those of the Last Judgement, are unalterable.” The final “judgment” comes on “Doomsday.” The year 2016 is already shaping up to be a year of judgment or

doomsday. But remember that, as in a court of law, after the verdict or judgment then comes the sentencing and that will be in 2017. One thing you learn as a parent is that the simpler the language of a lie, the more serious the problem probably is. “I sort of forgot to turn in one of my projects” might easily mean “I didn’t turn in any of my projects and have failed the class.” In his recent State of the Union speech, US President Barack Obama said, “Anyone claiming that America’s economy is in decline is peddling fiction.” That does not seem so bad, does it? The largest retailer in the world, Walmart, is closing 200 stores worldwide this year. But Walmart has 11,620 locations. No big deal. Dunkin’ Donuts is closing 100 of its 8,000 stores. Again, no big deal...or is it? Dunkin’ Donuts reported that same store sales are up only 1.1 percent over last year, as fewer customers came into each store. Small changes like this in an economy can easily be dismissed as “peddling fiction.” Except, a whole lot of little things always add up to a big situation. No one anticipated that a simple survey of land and livestock in 1086 would still be used even in the 21st century to track who owns what land and if proper taxes have been paid to the King through a few hundred years. There are many things going on that will negatively and severely im-

pact even the Philippines in 2016. The Capesize class cargo ship is the largest in the world, too large to pass through either the Suez or Panama canals, forcing these vessels to go around the Cape of Good Hope and Cape Horn. At the peak of the shipping boom in 2008, it cost $250,000 a day to hire a Capesize ship. Today it costs $2,600 per day. Maybe there is just an oversupply of these ships and not a drop in cargo. The Federal Reserve Bank of New York publishes its Empire State Manufacturing Survey index, which dropped in December to the lowest level since 2009. Total US industrial production last December fell at an annual rate of 3.4 percent. Never before in US economic history has industrial production been so low without the country next moving into a recession. There are a dozen other little things that do not promise good things for 2016. Did you ever have one of those 10-second brownouts that was just enough to turn off your desktop computer and then the real power cut came an hour later? That is what 2016 is going to be like. And I believe the stock market is always accurate. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

Sanders’s siren song in the Democratic debate

B J B | Bloomberg View

ILLARY CLINTON, Bernie Sanders and Martin O’Malley held their final pre-Iowa, pre-New Hampshire debate on Wednesday. It was surprisingly illuminating.

Their debates have generally been less interesting than those for the Republican nomination. After all, while the Republican nomination remains up for grabs, the Democratic nod has been safely in Clinton’s grasp for a year now. The only thing at stake appears to be whether Sanders can win in enough places early on that contested primaries will continue into the spring. If Clinton wins closely fought battles in Iowa and New Hampshire—states in which Sanders has a demographic advantage—the rest of the calendar will be symbolic at best. And, yet, on Wednesday really showed two directions the party could go after Barack Obama—its options wide open because the broken Republican Party has found it difficult to formulate policy. Clinton and O’Malley say: More of the same. It’s not just that Clinton ties herself as closely as possible to both Obama and to Bill Clinton. After all, both of those Democrats remain wildly popular with Democratic voters. It’s that both Hillary

Clinton and O’Malley formulate their campaigns exactly the same way most leading Democratic candidates have for generations. Here’s my five-point plan, they say. Here’s my program for that. Here’s why bills Democrats have passed have helped working and middle-class people and here’s how I intend do more and better. Sanders—who, to be fair, did put out a new single-payer health-care plan on Wednesday—is quite different. Again and again on Wednesday, Sanders basically said: None of anything any of us says makes any difference at all unless we end the influence of what he calls “millionaires and billionaires.” Regardless of the question, for Sanders the real answer is campaign-finance reform and a “political revolution.” Sanders himself is not substance-free. He debated details of health care, guns, Wall Street regulation and more. But Sandersism could easily become a path for becoming as substance-free as where the Republicans are. The Vermont senator doesn’t accuse Obama, Nancy Pelosi or

Harry Reid of selling out the Democrats the way that Ted Cruz accuses Republican leaders of being RINOs. He is, however, the candidate for those who believe that. Or, more to the point: Given what Sanders says about big money and political change, it’s simply impossible to also claim that the accomplishments of Obama and the 111th Congress in 2009-2010—the Affordable Care Act, Dodd-Frank, the economic stimulus bill, and more—could possibly be meaningful change. Both Clinton and O’Malley support campaign-finance reform. They support it, however, as one item on the list of specific, programmatic reforms they believe are needed. For Sanders, on the other hand, what he considers “corruption” really does take precedence over everything else. The clearest example of the two approaches was at the very end of the debate, when the candidates were asked if there was anything they had wanted to say but didn’t get a chance. O’Malley (who had the least time to speak) had several issues. Clinton raised the tainted water in Flint, Michigan. And Sanders? He simply repeated what he had said all night: “Very little is going to be done to transform our economy and to create the kind of middle class we need unless we end a corrupt campaign-finance system which is undermining American democracy.”

I’m no fan of that way of thinking for many reasons. It ignores the possibility that citizens can honestly disagree about things. Sanders repeatedly says that the American people agree with his substantive agenda, notwithstanding that Republican candidates have been winning an awful lot of elections recently. The worst thing about it, however, is that it leads easily to the mess the Republicans are in now with regard to policy. Just as Republicans who win elections are immediately suspected to have “gone Washington” and betrayed True Conservatives, it’s easy to imagine a future Democratic Party in which Democrats who win elections are suspected of betraying True Liberals (or perhaps even True Socialists) because they took money from the wrong groups. In real life, all politicians in the US political system are going to come up short of their promises—not because they’re corrupt, but because the system is designed to favor the status quo. Incremental change is all that is possible. And even that is so difficult that a party must be ready with serious, detailed plans whenever it does get an opportunity to enact them. Placing “corruption” at the center of the party’s political agenda would be a major step away from actually getting things done in the future.

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DST on transfers of real properties

In the power of the Spirit Msgr. Sabino A. Vengco Jr.

ALÁLAONG BAGÁ

Fulvio D. Dawilan

TAX LAW FOR BUSINESS

LTHOUGH comparatively lower than the other types of taxes, documentary-stamp tax (DST) is one of the more complicated types of taxes. The courts had clarified this type of tax to be in the nature of an excise tax. As repeatedly quoted in a number of cases, DST is an excise upon the privilege, opportunity or facility offered at exchanges for the transaction of the business. It is an excise upon the facilities used in the transaction of the business separate and apart from the business itself. DST is levied on the exercise by persons of certain privileges conferred by law for the creation, revision or termination of specific legal relationships through the execution of specific instruments. It is levied independently of the legal status of the transactions giving rise thereto. Despite the clarification made on the nature of DST, confusions are repeatedly encountered. For instance, there is still often a question as to whether it is a tax on the transaction or a tax on the document. This is also complicated by the fact that there are different applicable DST rates, such that the taxpayer would have to consult the Tax Code or the regulations to identify which is the applicable rate. This is also the only type of tax which is payable by either party to the transaction, such that if the parties did not agree as to who should be responsible for the payment, there is a possibility that the tax may be left unpaid. And more important, there is usually confusion as to what transaction is covered by each of the provisions imposing the tax. One of the provisions imposing DST, which is often the cause of disputes between taxpayers and the tax authority, pertains to transfers of real property. Be it noted that among those subject to DST are those imposed under Section 196 of the National Internal Revenue Code (NIRC) on the conveyances, deeds, instruments, or writings, whereby any land, tenement or other realty sold shall be granted, assigned, transferred or otherwise conveyed to the purchaser, or purchasers, or to any other person or persons designated by such purchaser or purchasers. The DST is based on the consideration contracted to be paid for such realty or on its fairmarket value, whichever is higher. The rule appears to be simple, but its implementation is often met with disagreement. In this regard, the tax bureau, in some of its issuances, had taken the position that a transfer of real property is subject to DST only in cases where there is a consideration. For example, rulings issued by the tax bureau had held that a reconveyance of a property by virtue of a court decision to return the property to the legal owner without consideration is not subject to the DST imposed on conveyances of real properties. There are, however, also other rulings holding that reconveyance of property based on a court-approved compromise agreement is in the nature of disposition of real property, which is subject to DST. In other words, as in the case of its application of the rules on DST in general, the tax bureau had also been inconsistent on its application of the DST rules on transfers of real property. It is because if this inconsistency that forced some taxpayers to bring their actions before the courts to question the imposition of DST or to recover those that were erroneously paid or collected. Such was the case in GR 192398, which was decided by the Supreme Court in 2014. In said case, the bureau took the position that Section 196 of the NIRC covers all transfers of real property and does not only refer to sale of realty since it speaks of real property being “granted, assigned, transferred or otherwise conveyed.” The bureau further averred that it is enough that a conveyance of real

property has been effected since DST is imposed not on the document alone, but on the transaction. Ruling against the contention of the bureau, the Court held that Section 196 pertains only to sale transactions where real property is conveyed to a purchaser for a consideration. The phrase granted, assigned, transferred or otherwise conveyed is qualified by the word “sold,” which means that DST under Section 196 is imposed on the transfer of realty by way of sale and does not apply to all conveyances of real property. The fact that Section 196 refers to the words “sold”, “purchaser” and “consideration” undoubtedly means that only sales of real property are contemplated by the provision. The Court further stated that the phrase granted, assigned, transferred or otherwise conveyed clearly refers to the phrase whereby any land, tenement or other realty is sold. This clearly shows that the legislature intended Section 196 to refer to a transfer of realty by virtue of sale. This is further bolstered by the fact that the property is granted, assigned, transferred or otherwise conveyed to the purchaser, or purchasers, or to any other person or persons designated by such purchaser or purchasers. In addition, the basis of the stamp tax is the consideration agreed upon by the parties or the property’s fair-market value. Taking all of these into consideration, it is beyond doubt that Section 196 pertains to a transfer of realty by way of sale. The Court made a similar decision in a subsequent case (GR 175188, July 05, 2015) whereby the Court ruled that DST under Section 196 is imposed on the transfer of real property by way of sale and does not apply to all conveyances of real property. Incidentally, the two cases involved transfers of real properties by an absorbed corporation to a surviving corporation in a merger. As an effect of the merger, properties were transferred by operation of law, without any further act or deed on the part of the parties. Thus, there should be no DST. In fact, as the Court puts it, any doubts as to the tax-free nature had been already removed by the subsequent amendment introduced by Republic Act 9243, specifically exempting from the payment of DST the transfer of property pursuant to a merger. This does not mean though that the nonimposition of DST on transfer of real properties should be isolated to transfers by reason of merger. The more crucial is the pronouncement by the Court that the law applies only to transfers of real property via sale. Hence, any transfer of real property not involving sale should not be subject to DST. The author is a partner at Benedicta-Du Baladad (BDB) and Associates Law Offices. If you have any comments or questions concerning the article, you can e-mail the author at Fulvio.D.Dawilan@ bdb.com.ph or call 856-2952.

HE teachings and words of the Lord are life-giving, let our own words echo them (Psalm 19:8, 9, 10, 15). The gospel preached by Jesus as the one anointed with the Holy Spirit is realized in the lives of the poor, the oppressed and the suffering (Luke 1:1-4; 4:14-21).

Words of life THE selected second part of Psalm 19 makes clear that the glory of God is manifested, especially for us in His words of teaching and law, which are life-giving. The various forms of the law (torah) are lined up: law, decrees, precepts, commandments, fear of the Lord and ordinances. The fear of the Lord is taken as part of the law which commands human beings to honor and respect God. The qualities associated with these manifestations of the divine will are identified: perfect, trustworthy, right, clear, pure and true. And the benefits they bestow on us are, likewise, enumerated: refreshing the soul; giving wisdom to the simple; rejoicing the heart; enlightening the eyes to see unnoticed dimensions of truth; enduring forever; and a path to righteousness. To embrace the law of God is to welcome the will of God and to live in accord with it in a fulfilling

and God-fearing existence—to the praise and glory of the Lord. It is the sacred word of God that bind us in union with Him and shapes us in godlikeness. According to Isaiah (2:3, 5), God’s word and instruction is the light to live by and the path to walk in. Our own response, “Your words, Lord, are spirit and life,” echoes the reaction to Jesus by the disciples, “Master, to whom shall we go? You have the words of eternal life” (John 6:68). Indeed, the divine words of life bear fruit in our life of obedience to God. That is why the psalmist at the end prays, “Let the words of my mouth and the thought of my heart be acceptable to you, Lord.”

Deeper understanding of the teachings

LUKE is decided to make his own narrative of the events that have been fulfilled pertaining to our savior Jesus Christ. He has made his own investigation of everything from

Thursday, January 21, 2016 A11

the very first, so his orderly account should provide his friend Theophilus (“God’s lover”) a knowledge of the “full truth,” an accurate understanding of the things about which he has been instructed. This deeper knowledge is not at the level of facts, but at the level of interpretation. The evangelist’s concern is for the right, deeper spiritual understanding of the events that have happened. And the proper theological lens for the reading of the Jesus-events is the divine promises they fulfilled. At the Jordan after the baptism by John, Jesus at prayer had a religious experience (Luke 4:21-22). He experienced Himself as filled with God’s Spirit and as God’s beloved Son. Driven by the Spirit into the desert, His dramatic “No” to Satan’s self-centered understanding of being “Son of God” clarified what His experience does not mean, even as it allowed the Holy Spirit to inhabit Him even more completely. And, “in the power of the Holy Spirit,” He now returns to Galilee, to develop His full understanding of what the “Spiritfilled Son of God” means according to the past promises in Scripture.

The fulfillment of God’s words

IN His hometown, in consultation with the tradition of His people, Jesus is led to the deeper knowledge of Himself as Son of God and filled with the Holy Spirit. When handed the scroll of the book of Isaiah, He searches to find the words that spell the meaning of “Son of God” and

Spending big for the mandate Ariel Nepomuceno

DECISION TIME

ERY recent results from election-spending research done by Nielsen Philippines reveal that from November 30, 2015 to January 1, 2016, our presidential candidates coughed out nearly P1.6 billion on television advertisements in 2015. And we are just talking about TV here. And the race has just started. Nothing yet about other media forms, publicity gimmicks, provincial sorties and other campaign-related activities. And three more months to go. Those who closely monitor the entirety of the electoral exercise from start to finish would shudder in utter disbelief on how these candidates can afford to spend so wildly to get them their government seat and, yet, others see the silver lining in all this spending.

Brighter side of the issue

IN fact, Cielito F. Habito, former National Economic and Development Authority chief, said spending related to the elections show some influence in GDP growth. He also opined that funds from abroad go back to the country and is circulated back to the economy. He went on by citing a lower average of GDP growth rate in nonelection years compared to election years. He said that during election years, there was a 2-percent to 3-percent point increase in the GDP. However, Habito stated that, while this is a positive indication, the growth is not widespread and is only focused on the services sector,

particularly on mass media. Standard Chartered chimed in by predicting that the 2016 elections would boost our country’s economic growth. The GDP is expected to increase to 6 percent. The impact will be felt as the manufacturing, communication and government services sectors receive inputs from other sectors due to high backward linkages. As a result, there will be more demand from other sectors, such as the utilities and trade sectors. Standard Chartered also expect the presidential and vice presidential candidates to spend up to P10 billion ($213.27 million), or 0.08 percent of the GDP, on their respective campaigns.

Legal concerns

ULTIMATELY, the question would be whether all these electoral spending complies with our governing laws. The Omnibus Election Code, among others, fixes the amounts

Trump’s Palin calculus B J B Bloomberg View

O Sarah Palin has endorsed her fellow reality-television star Donald Trump for president. It may not be a sign of the apocalypse, but the announcement is certain to keep the media and pundits busy for at least 24 hours. At the very least, that helps Trump stay ahead in his Red Queen’s race—that is, his attempt to maintain his domination of political news, which makes it harder for any other candidate to move up. It’s even possible that a handful of Iowa Tea Party voters who have

been wavering between Trump and Ted Cruz could be swayed by the Sage of Wasilla. And who knows? In a very close election, just a few voters could make all the difference: Trump and Cruz are in a dead heat in Iowa, according to HuffPollster’s current estimate. On the other hand, there’s no suggestion from polling that Palin’s endorsement is the gold standard. And although endorsements may be quite important in aggregate, the support of any single figure usually makes little difference. Endorsements bring resources, whether it’s publicity or money or volunteer

and the kind of expenditures that a registered political party and a candidate can spend. Prohibited contributions and ways of raising financing for campaigns are also clearly provided. The obvious objective is to curb the evils that are produced by rampant misuse of all the money that goes into the exercise of suffrage. Experience shows that, indeed, funding can make a lot of difference in running a successful electoral campaign. Effective campaign machineries involve an interplay of good public relations, image enhancement and public opinion formation in favor of the candidate. Big PR firms, advertising agencies, political strategists and analysts are, likewise, tapped for their expertise depending on the assessment of where the candidate is in terms of ranking. Widespread use of traditional media and now, trimedia are a critical success factor. All these account for the huge amounts of money that circulate during election season.

Arena for the big warriors

of “filled with the Spirit.” Isaiah (61:1-2) the prophet had announced something to happen, a word of hope to so many in hopeless situation. And Jesus assumes the position of the teacher, who now tells his synagogue audience that what was promised in Scripture has been fulfilled before their very eyes, in their very hearing, as they listen to Him and look at Him. In the language of Isaiah, Jesus finds the words that spell out the meaning of Spirit-filled Son of God. It is not a title of privilege, but a mission of liberation, a call to transformative action. In the power of the Spirit of God, the anointed Son of God will free and enable those impoverished, imprisoned and impaired. As Jesus speaks the words of Scripture, they are no longer words of prediction; they are now words of the inauguration of the time of fulfillment and of God’s reign. Alálaong bagá, in Jesus is the word of God fulfilled, proclaiming a jubilee of divine mercy and love. Endowed with His very own Spirit, Christians as today’s anointed ones must be the “deeper understanding” for the world of God’s “words of spirit and life.” We need to be the fulfillment and examples of “glad tidings to the poor...liberty to captives... sight to the blind...freedom to the oppressed.” Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on DWIZ 882, or by audio-streaming on www.dwiz882.com.

and subverts the electoral process, engenders corruption and gradually erodes our democratic system of government. These negative perceptions have led some critics to believe that the 2015 budget might be used for the 2016 elections. Infrastructure projects, social-welfare programs of late are viewed as campaign tools to lure the people to vote in a particular manner.

War chest is not everything

HOWEVER, the direct relationship between the level of electoral spending and victory at the polls is not straightforward. Some of the richest candidates do not end up winning. This phenomenon is prevalent not only in the US but in other parts of the world. So, megabucks without a coherent and persuasive platform will not yield surefire positive results. Still, our people must relentlessly observe and monitor the campaign behavior of our political candidates. The Commission on Elections and other election watchdogs must fulfill its statutory duty of making sure that there is a level playing field in the upcoming elections. Excessive, unregulated spending and commercialization of the elections threaten good governance and shall send a wrong signal to those who regard the exercise as a vehicle to improve their lives. And yes, every peso spent to further democracy matters.

WHILE needed, electoral spending is seen as a compass for political equity. Candidates, who have more financial resources, have a better chance at getting elected, they say. On the other hand, those who have demonstrated the utmost commitment to serve the public interest are sidelined by their lack of funding. Worst, some political personalities see the elections as an investment initiative. They earn from it and winning does not even seem to be an issue. This painful reality debases

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hours. Palin will help with publicity for one day, but probably not much more than that. It’s even possible, as political scientist Brendan Nyhan suggests, that Palin could push undecided party actors farther away from Trump. After all, if the nomination really does come down to Trump against Cruz, it’s going to be a tough choice for many party elites, especially those who have worked with Cruz and can’t stand him. Knowing that going with the Texas senator will at least have the benefit of annoying Palin might help get them over that hump. In any case, having Trump

out on the hustings praising Palin will remind many party actors of the weakness of his attachment to the party and of how little they can trust him either as their nominee or as president. Mostly, however, this is just a reminder of John McCain’s irresponsibility in selecting Palin as his running mate without bothering to find out who she was. She now is repaying the 2008 Republican nominee by endorsing the man who attacked his unimpeachable heroism to climb to the top of the polls. Whatever happens next, Republicans should never forgive him for that.

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Car parts makers ramp up production capacity in response to CARS Program

B C N. P

OCAL parts makers are redoubling efforts to ramp up production capacity in response to the government’s Comprehensive Automotive Resurgence Strategy (CARS) Program, which is expected to boost sales to P240 billion by 2018. The outlook is positive for the Philippine Parts Maker Association (PPMA) as majority of its members, being small and medium businesses, are beginning to see the fruits of the CARS Program. PPMA President Ferdinand Raquelsantos said, with car assemblers and parts makers now in the development stage of meeting the program’s requirements, a domestic sales figure of P240 billion is achievable when actual production starts in 2018. “Roughly, after 2018, we should be able to hit P240 billion because once this program starts, there will be a lot of additional parts that we don’t normally produce here,” Raquelsantos said.

₧240B

Projected total sales of local auto parts when the CARS Program takes effect in 2018 Parts makers are seen as the real winners in the government’s CARS Program as they stand to benefit from improved production and technology improvement. A salient goal of the CARS is

to encourage local manufacturing by offering attractive fiscal and nonfiscal perks to car assemblers who will, in turn, increase the business of their parts makers and suppliers. To boost manufacturing in the country, the Department of Trade and Industry’s CARS Program requires an increase in local content to around 60 percent of the parts of every locally assembled vehicle. A side f rom boost ing loca l content sourcing, the CARS Program also requires participating car assemblers to produce at least 200,000 units over the course of the program to benefit from the incentives. With this volume requirement, parts makers can now boost their capacity, which, thus far, have been underutilized. Parts makers also see employment to increase by 60 percent to 70 percent in their sector. Another advantage of the program, said Raquelsantos, is the level of technology that would be transferred to local parts makers in making the “strategic parts” of the vehicle. The CARS Program defines strategic parts as those automotive vehicle parts specific to an enrolled model at original equipmentmanufacturer standards and which

Roughly, after 2018, we should be able to hit P240 billion because once this program starts, there will be a lot of additional parts that we don’t normally produce here.” —Raquelsantos

are not currently being produced in the Philippines. Such is the optimism of PPMA that it expects to see this year not less than 31 joint ventures or technical agreements between its members and foreign suppliers. Technical agreements would allow foreign players to make use of local parts makers’ existing equipment to meet the local content requirement of the program, at determined quality levels. Joint ventures, on the other hand, can also be closed between local parts makers and foreign parties when the equipment for a particular vehicle part is not available and will entail an investment to be made locally. Raquelsantos said that small and medium parts makers will likely enter the production network in supply-

ing the smaller components of larger parts, such as the large body shell and plastic assemblies. “There are ongoing talks already on the development of these big body parts, shell and plastic, but we are actually more into the small parts or what they call strategic parts and common parts. The car assemblers themselves can make the large components,” Raquelsantos explained. “We see a lot of items that are going to be produced by car assemblers themselves because some of these big parts require huge machines that we don’t have locally, so some have to be done by the local car assemblers themselves…and with that, we are hoping also that the small parts that come into these big parts will trickle down to the smaller parts makers,” he added. Examples of parts that can be

produced are hoods, instrumentation panels and subparts of the vehicle’s chassis. According to Assistant Secretary for Industry Development Rafaelita Aldaba, the Philippine Statistics Authority has estimated the value of output of production of motor-vehicle parts and accessories at P133.5 billion in 2013. This is the base year for the estimated doubling to P240 billion in domestic sales of auto parts by 2018. The auto industry contributes 6 percent to total manufacturing employment, and motor-vehicle parts exports, valued at P4.3 billion in 2014, is 7 percent of the country’s total exports. The CARS Program is a government stimulus initiative aimed at reviving the country’s manufacturing sector by specifically targeting the automotive industry given its strong linkages to other manufacturing sectors and its so-called multiplier effect on these sectors. The CARS Program provides for a government support fund of P27 billion or a budget of P9 billion for each enrolled vehicle model, for which the program will open three slots. CARS is a core component of the government’s Manufacturing Resurgence Program.